Cross-Price Elasticity Calculator
Find the cross-price elasticity of demand between two goods and whether they are substitutes or complements.
Change the values and press Calculate to work out your own figures.
Enter good X's two prices and good Y's two quantities.
Show the working
- %Δ = (new − old) ÷ ((new + old) ÷ 2)
- elasticity = %Δ quantity ÷ %Δ price
How to use it
Enter good X's two prices and good Y's two quantities.
Enter amounts without commas or with them; rates are percentages (5 for 5%). Negative amounts are allowed where a sign means money paid out.
Key facts
cross elasticity = %Δ quantity of Y ÷ %Δ price of X
Reading it
Above 0 the goods are substitutes; below 0, complements; near 0, unrelated.
Questions
Are goods with a cross elasticity of −2.2 substitutes?
No, complements: Y sells less when X costs more.
Formulas
cross elasticity = %Δ quantity of Y ÷ %Δ price of X
Sources
Limitations
- Results are estimates for planning, not offers or financial advice; lenders and banks may round, count days or time payments differently.
- Rates are nominal annual rates compounded as you choose; payments at a different frequency use the equivalent periodic rate.