XED Flashcards
1
Q
XED
A
Shows the responsiveness of quantity demanded of GOOD X following a change in price of GOOD Y
2
Q
What are the 2 types of goods for XED
A
Complements and substitutes
3
Q
Complements and substitutes definition
A
Goods that can be consumed together
Goods that can be replaced for another
4
Q
What type of demand are subs in, and what XED?
A
Competitive demand, positive XED, closer to 0 the weaker the relationship.
5
Q
What type of demand are complements in, and what XED
A
Joint demand, negative XED
6
Q
Example of strong and weak substitute
A
Strong-air travel for train for long distance
Weak-air travel and cars for short distance.
7
Q
Go to evaluation for XED
A
Closeness of substitutes
