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?

---

Definitions:

Nexus One

A smartphone developed by Google and HTC, introduced in 2010 as part of Google's Nexus series.

Google

A multinational technology company that specializes in Internet-related services and products, including online advertising technologies, search engine, cloud computing, software, and hardware.

Feedback Control

A system that regulates its operation by measuring its output, comparing it to a standard, and taking corrective action.

Hotel Concierge

A hotel employee who assists guests by providing information about services and local attractions, and arranging reservations.