Learning Contents:                                                              ·          Degrees of cross price elasticity of demand The effect of change in price of one good on the demand of another good is measured by cross price elasticity of demand. It is calculated as percentage change in quantity demanded for one good divided by percentage change in price of another good. It explains the nature and degree of relationship between price of one good and the demand of another good i.e. whether the goods are substitutes, complements or independent. It is explained by three different degrees or possibilities as below: 1.    ...