Editing Cross elasticity of demand (section)

=== Degree of response ===
The '''higher''' the positive cross elasticity of demand, the '''more substitutable''' two products are; thus, the more competition between them. Similarly, the '''lower''' the negative cross elasticity of demand, the '''more complementary''' two goods are. In general, monopolies usually possess a low-positive cross elasticity of demand with respect to their competitors.<ref>{{cite journal |last1=Clark |first1=J. M. |title=Review of Value and Capital: An Inquiry into Some Fundamental Principles of Economic Theory. |journal=Political Science Quarterly |date=1940 |volume=55 |issue=1 |pages=127–129 |doi=10.2307/2143778 |url=https://www.jstor.org/stable/2143778 |access-date=7 June 2024 |issn=0032-3195|url-access=subscription }}</ref><ref>{{cite journal |last1=Surányi-Unger |first1=Theo |title=The Concept of Elasticity in Economics |journal=Weltwirtschaftliches Archiv |date=1949 |volume=62 |pages=11–27 |url=https://www.jstor.org/stable/40432297 |access-date=7 June 2024 |issn=0043-2636}}</ref><ref>{{cite journal |title= G. J. Stigler ''The Theory of Price''. New York, Macmillan, 1952, VII p. 340 P|journal= Bulletin de l'Institut de Recherches Économiques et Sociales|date=1953 |volume=19 |issue=1 |pages=97 |doi=10.1017/S1373971900100782}}</ref>

==== Elastic demand ====
If the absolute value of the cross elasticity of demand is greater than 1, the cross elasticity of demand is '''elastic''', this means that a change in price of good A results in a '''more than proportionate''' change in quantity demanded for good B. In other words, a change in price of good A has a ''relatively'' high impact on the change in quantity demanded for good B.
<math display="block">|XED|>1</math>
==== Inelastic demand ====
If the absolute value of the cross elasticity of demand between 1 and 0, the cross elasticity of demand is '''inelastic''', this means that a change in price of good A results in a '''less than proportionate''' change in quantity demanded for good B. In other words, a change in price of good A has a ''relatively'' small impact on the change in quantity demanded for good B.
<math display="block">0<|XED|<1</math>

==== Unitary demand ====
If the value of the cross elasticity of demand is 1, the cross elasticity of demand is '''unitary''', this means that a change in price of good A results in an exactly '''proportionate''' change in quantity demanded for good B.
<math display="block">XED=1</math>