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In [[economics]], the '''cross elasticity of demand''' or '''cross-price elasticity of demand''' measures the responsiveness of the [[Demand (economics)|demand]] for a [[Good (economics)|good]] to a change in the price of another good. It is measured as the [[percentage change]] in demand for the first good that occurs in response to a percentage change in price of the second good. For example, if, in response to a 10% increase in the price of fuel, the demand of new cars that are fuel inefficient decreased by 20%, the cross elasticity of demand would be:
<math>\frac{-20 \%}{10 \%}=-2</math>. A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products. These two key relationships may go against one's intuition, but the reason behind them is fairly simple: assume products A and B are ''complements'', meaning that an increase in the demand for A is caused by an increase in the quantity demanded for B. Therefore, if the price of product B decreases, then the demand curve for product A shifts to the right, increasing A's demand, resulting in a ''negative'' value for the cross elasticity of demand. The exact opposite reasoning holds for substitutes.
 
==Formula==
The formula used to calculate the coefficient cross elasticity of demand is
 
:<math>E_{A,B} = \frac{\%\ \rm{change}\ \rm{in}\ \rm{quantity}\ \rm{demanded}\ \rm{of}\ \rm{product}\ A}{\%\ \rm{change}\ \rm{in}\ \rm{price}\ \rm{of}\ \rm{product}\ B} </math>
 
or:
 
:<math>E_{A,B}={P_{B,1} + P_{B,2} \over Q_{A,1} + Q_{A,2}}\times{\Delta Q_A \over \Delta P_B}=\frac{\partial Q_{A}}{\partial P_{B}}\frac{P_{B}}{Q_{A}}</math>
 
==Results for main types of goods==
In the example above, the two goods, fuel and cars (consists of fuel consumption), are ''[[complement good|complements]]''; that is, one is used with the other. In these cases the cross elasticity of demand will be ''negative'', as shown by the decrease in demand for cars when the price for fuel will rise. In the case of perfect substitutes, the cross elasticity of demand is equal to positive infinity (at the point when both goods can be consumed). Where the two goods are ''[[Independent goods|independent]]'', or, as described in [[consumer theory]], if a good is independent in demand then the demand of that good is independent of the quantity consumed of all other goods available to the consumer, the cross elasticity of demand will be ''zero'': as the price of one good changes, there will be no change in demand for the other good.
 
{|
|[[Image:Cross elasticity of demand complements.svg|thumb|upright|200px|Two goods that complement each other show a negative cross elasticity of demand: as the price of good Y rises, the demand for good X falls]]
|[[Image:Cross elasticity of demand substitutes.svg|thumb|upright|200px|Two goods that are substitutes have a positive cross elasticity of demand: as the price of good Y rises, the demand for good X rises]]
|[[Image:Cross elasticity of demand independent.svg|thumb|upright|200px|Two goods that are independent have a zero cross elasticity of demand: as the price of good Y rises, the demand for good X stays constant]]
|}
 
When goods are substitutable, the diversion ratio, which quantifies how much of the displaced demand for product ''j'' switches to product ''i'', is measured by the ratio of the cross-elasticity to the own-elasticity multiplied by the ratio of product ''i''{{'}}s demand to product ''j''{{'}}s demand. In the discrete case, the diversion ratio is naturally interpreted as the fraction of product ''j'' demand which treats product ''i'' as a second choice,<ref>Bordley, R., "Relating Cross-Elasticities to First Choice/Second Choice Data", ''Journal of Business and Economic Statistics,'' (1985).</ref> measuring how much of the demand diverting from product ''j'' because of a price increase is diverted to product ''i'' can be written as the product of the ratio of the cross-elasticity to the own-elasticity and the ratio of the demand for product ''i'' to the demand for product ''j''. In some cases, it has a natural interpretation as the proportion of people buying product ''j'' who would consider product ''i'' their "second choice".
 
===Selected cross price  elasticities of demand===
Below are some examples of the cross-price elasticity of demand (XED) for various goods:<ref>Frank (2008) p.186.</ref>
{| class="wikitable"
|-
! Good !! Good with Price Change !! XED
|-
| Butter || Margarine || +0.81
|-
| Beef || Pork || +0.28
|-
| Entertainment || Food || -0.72
|}
 
==See also==
* [[Economics]]
* [[Supply and demand]]
* [[Elasticity (economics)]]
* [[Price elasticity of demand]]
* [[Price elasticity of supply]]
* [[Income elasticity of demand]]
* [[Arc elasticity]]
* [[Yield elasticity of bond value]]
 
==Notes==
{{reflist}}
 
==References==
* {{Cite book|last=Frank|first=Robert|year=2008|title=Microeconomics and Behavior|edition=7th|publisher=McGraw-Hill|isbn=978-0-07-126349-8}}
 
==External links==
* [http://www.fapri.iastate.edu/tools/elasticity.aspx Database for Commodity Elasticity] at [[Food and Agricultural Policy Research Institute]], [[University of Iowa]]
 
[[Category:Consumer theory]]
[[Category:Elasticity (economics)]]
[[Category:Demand]]

Latest revision as of 10:11, 27 December 2014

Let's look an actual registry scan plus a few of what we will see when we do one on your computer. This test was performed on a computer that has been not working as it must, running at slow speed and having some issues with freezing up.

Most of the reliable companies will provide a full cash back guarantee. This means that you have the chance to receive a money back when you find the registry cleaning has not delivered what you expected.

Windows is actually fairly dumb. It only knows how to follow commands plus instructions, meaning that when we install a system, that system has to tell Windows exactly what to do. This really is done by storing an "instruction file" inside the registry of your program. All the computer programs place these "manuals" into the registry, allowing a computer to run a broad range of programs. Whenever you load up one of those programs, Windows simply looks up the system file in the registry, plus carries out its instructions.

Paid registry products on the alternative hand, I have found, are frequently cheap. They supply standard, free changes or at least cheap updates. This follows because the software manufacturer requirements to confirm their product is best inside staying ahead of its competitors.

To fix the problem which is caused by registry error, we want to employ a iolo system mechanic. That is the safest and simplest means for average PC consumers. However there are thousands of registry products available out there. You have to find a good one that could really resolve the problem. If you use a terrible one, you might expect more issues.

The most probable cause of your trouble is the program problem - Registry Errors! That is the reason why folks that already have over 2 G RAM on their computers are still frequently bothered by the issue.

Maybe you may be asking why these windows XP error messages appear. Well, for we to be capable to recognize the fix, we must first know where those errors come from. There is this software called registry. A registry is software which stores everything on your PC from a regular configuration, setting, information, and logs of activities from installing to UN-installing, saving to deleting, along with a lot more alterations we do in a system pass from it and gets 'tagged' plus saved because a easy file for recovery reasons. Imagine it as a big recorder, a registrar, of all your records inside your PC.

Ally Wood is a specialist software reviewer and has worked inside CNET. Then she is functioning for her own review software organization to give suggestions to the software creator and has done deep test inside registry cleaner software. After reviewing the most popular registry cleaner, she has written complete review on a review website for we that is accessed for free.

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