Scribd Logo
Carica

Benvenuto in Scribd!

  • Mind Mapping of XED

    Caricato da

    cjcsucks
    104 visualizzazioni2 pagine
    XED > 0 = E.g. When price of Good B Increase, Demand for Good A Falls. XED 0 = e.g. When price of Good B increases, Demand for Good A falls. Use for Firms Decrease substitutability of own product with competitors' if they decreased price (make XED = 0) and vice versa. Increase relationship / bundle with a complement (XED 1).

    Descrizione originale:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Formati disponibili

    DOC, PDF, TXT o leggi online da Scribd

    Hai trovato utile questo documento?

    Questo contenuto è inappropriato?

    Segnala questo documento
    XED > 0 = E.g. When price of Good B Increase, Demand for Good A Falls. XED 0 = e.g. When price of Good B increases, Demand for Good A falls. Use for Firms Decrease substitutability of own product with competitors' if they decreased price (make XED = 0) and vice versa. Increase relationship / bundle with a complement (XED 1).

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Scarica in formato DOC, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    104 visualizzazioni2 pagine

    Mind Mapping of XED

    Caricato da

    cjcsucks
    XED > 0 = E.g. When price of Good B Increase, Demand for Good A Falls. XED 0 = e.g. When price of Good B increases, Demand for Good A falls. Use for Firms Decrease substitutability of own product with competitors' if they decreased price (make XED = 0) and vice versa. Increase relationship / bundle with a complement (XED 1).

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Scarica in formato DOC, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    di 2

    Page 1

    Mind Map of Cross Elasticity of Demand

    CROSS ELASTICITY OF DEMAND


    Page 2

    XED > 0 ⇒ Mind Map of Cross Elasticity of Demand


    E.g. When Price of Good B Increase, Demand for Good A Increases.

    XED < 0 ⇒
    E.g. When Price of Good B Increases, Demand for Good A Falls.
    Use for Firms

    Decrease substitutability of own product with competitors’ if


    they decreased price (make XED = 0) & vice versa.
    XED = 0 ⇒
    Increase relationship/bundle with a complement (XED < 0)
    which has a falling price (make XED > 1).
    XED < 1 ⇒ Demand is Cross Price Elastic (Loosely Related) Decrease substitutability of own product with competitors’
    Change in quantity demanded of Good A is proportionately (product differentiation) or build on niche area to avoid price
    than change in price of Good B competition/affected by others’ price actions.
    XED > 1 ⇒ Demand is Cross Price Inelastic (Closely Related)
    Change in quantity demanded of Good A is proportionately
    than change in price of Good B

    Formula Definition

    Percentage change in Responsiveness of Demand of a Good to a


    Percentage change in Change in ,
    Ceteris Paribus.
    Determinant

    Closeness of the two related goods.

    Potrebbero piacerti anche