Topic > Essay on Demand and Demand - 923

Furthermore, this will imply price demand and give a negative output of -0.4, where this will cause the coefficient of (P) for microwave food to be classified as inelastic. Cross price elasticity will reveal a substitute good because when the price of the product increases, the demand for our good increases and competitors in the market will lose customers. The coefficient of (PX) is equal to 0.13. Indeed, when the demand of competitors increases their price, our company will continue to acquire customers, so the higher the result, the better the effect it will have on the demand for the product.