Why Can Cross Price Elasticity of Demand Be Positive or Negative

question 230

Essay

Why can cross price elasticity of demand be positive or negative, unlike the price elasticity of demand with respect to the item's own price?

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Definitions:

Rating Scale

A method to assign a value or score on a continuum for a specific trait or behavior.

Events

Occurrences or happenings, especially those significant to the psychological state or behavior of an individual.

Magnitudes

Quantitative measures that assign size, length, area, volume, or another metric quantity to objects or phenomena.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body has to stress, proposed by Hans Selye.