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Cross elasticity of demand -     Home Encylopedia Directory eShowcase Sitemap Privacy Contact Us Enyclopedia Home | See live article   Cross elasticity of demand In economics, the cross elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in the price of another ... the second good. For example, if, in reponse to a 10% increase in the price of fuel, the quantity of new cars demanded decreased by 20%, the cross elasticity of demand would be -20%/10% = -2. In the example above, the ...