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🔀 Cross Price Elasticity Calculator

Calculate the cross-price elasticity of demand between two goods and see whether they are substitutes or complements.

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What is cross-price elasticity of demand?

Cross-price elasticity of demand (XED) measures how the quantity demanded of one good responds to a price change in a different good. It reveals whether two goods are substitutes (like butter and margarine) or complements (like coffee and creamer).

The formula

XED = (% Change in Quantity Demanded of Good X) / (% Change in Price of Good Y), using the midpoint method for percentage changes. A positive value means the goods are substitutes; a negative value means they are complements; near zero means they’re unrelated.

This calculator is for general economics education purposes.

Last reviewed August 2026