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Understanding Cross-Price and Own-Price Elasticity of Demand

By October 31, 2009

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It is a common topic in first year microeconomics courses that often confuses students. I hope this walkthrough helps - Price Elasticity - How to Use Cross Price and Own Price Elasticity.


October 31, 2009 at 9:07 pm
(1) Jon says:

The link to the article isn’t working for me.

November 4, 2009 at 10:18 pm
(2) trade currencies and cfd's online says:

I suppose that you are using a log-log model to estimate elasticity?


November 5, 2009 at 3:10 pm
(3) Frank McGilly says:

Not a question, but if one object is to avoid confusion, look again at the last sentence under ‘Own Price Elasticity — Answering the Question’

March 4, 2010 at 10:15 am
(4) Sanna says:


I was wondering why the own-price elasticity figure is always a pure number (i.e. with no units).

Also, do the price elasticity and own-price elasticity mean exactly the same thing?

Many thanks for your clarification still on this.

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