When the price of hizzle increased by 25%, the quantity sold decreased by 20% and sales of perf increased 15 %

Question

What is the cross elascicity of demand between perf and hizzle? Thank you for your help

Answer 1

E(X)=15%/25%=0.6

Cross elasticity=0.6

Cross elasticity of demand is inelastic between hizzle and perf.

http://en.wikipedia.org/wiki/Cross_elast...