Elasticity - XED Flashcards
1
Q
XED- what type of good is negative?
A
Complementary - as price increases demand decreases (vice versa)
2
Q
XED defenition?
A
Measures the extent to which the demand of a good changes in response to a change in the price of another good
3
Q
XED equation?
A
%change in P of good A
4
Q
XED- what type of good is positive
A
Substitute
As price rises, demand rises - responds more than proportionately
