XED Flashcards
1
Q
XED =
A
% change in quantity demanded for good a / % change in price for good b
2
Q
XED > 0
A
substitute good
3
Q
XED = 0
A
or close to 0
inelastic
no link between goods
4
Q
XED < 1
A
complementary good
5
Q
substitute good
A
increased price for 1 pair of substitutes = increased demand for the other
6
Q
complementary good
A
increased price of 1 pair of goods in joint demand = increased demand in other
7
Q
party season, near Christmas
A
positive substitutes, negative complimentary
