cross elasticity of demand

Definitions

Economics

  • noun
    (written as cross-elasticity of demand)
    the change in the demand for a good which results from the change in price of another good, shown as a percentage, assuming that the price of the first good remains constant; if the two goods are substitutes the demand for one will rise as the price of the other increases, but if they are complements then the demand for the first will fall as the price of the second increases

Health Economics

  • (written as Cross-elasticity of Demand)
    The responsiveness of the consumption of a good or service to a change in another good's price. A study that examined cross-elasticities between over-the-counter and prescription medicines was O'Brien (1989).

Marketing

  • noun changes in demand for an item depending on the selling price of a competing product
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