Price, income, and cross-price elasticities of demand Microeconomics Supply and Demand Price, income, and cross-price elasticities of demand Questions What is an example of a situation where a cross price elasticity of demand is common? Why is the concept of cross price elasticity of demand important? Within the cross-price elasticity demand equation, what does a positive net value denote and what does a negative net value denote? What is the cross-price elasticity of demand? Can cross-price elasticity be negative? For what types goods would cross-price elasticity be positive? How does the cross-price elasticity of a substitute good differ from that of a complementary good? Supply and Demand View all chapters Market equilibrium Determinants of supply and demand Price and quantity controls Elasticity Price, income, and cross-price elasticities of demand Price elasticity of supply Consumer surplus, producer surplus, and allocative efficiency Tax incidence and deadweight loss Prev Next