Cross Price Elasticity of Demand measures the sensitivity between the quantity demanded in one good when there is a change in price in another good. This worked example asks you to compute two types of demand elasticities and then to draw conclusions from the results. Cross Price Elasticity Economics Lessons Economics Books Economics Notes The fact that the cross price elasticity is greater than 1 in absolute terms tells you that the percent change in the quantity demanded is larger than the percent change in the price of hot dogs. . As a common elasticity it follows a similar formula to Price Elasticity of Demand. Cross elasticity of demand is useful for businesses. Complementary goods are goods that are often bought together negative XED. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy Safety How YouTube works Test new features Press Copyright Contact us Creators. If the cross elastici