1. Education

Understanding Cross-Price and Own-Price Elasticity of Demand

By October 31, 2009

Follow me on:

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.

Comments

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?

Cheers!

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:

Hi,

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.

Leave a Comment


Line and paragraph breaks are automatic. Some HTML allowed: <a href="" title="">, <b>, <i>, <strike>

©2014 About.com. All rights reserved.