# cross price elasticities

Not what you're looking for?

I am trying to determine own company and cross price elasticities.

Here are my numbers:

Own company:

demand starts at 80 units, increases to 96

price starts at $1.33/unit and decreases to .97

Other company:

demand starts at 80 units, increases to 96

price starts at 1.49 and decreases to 1.10

Thank you.

##### Purchase this Solution

##### Solution Summary

This posting helps to determine own company and cross price elasticities.

##### Solution Preview

First of all we need to analyze the price elasticity of demand for our own company. The price elasticity of demand measures the proportion of change in demand to the change in price. Thus it shows the responsiveness of demand to the price.

? If price elasticity of demand is bigger then 1 then demand is price elastic (demand is sensitive to price changes

? If price elasticity of demand is equal to 1 then demand is unit elastic

? If price elasticity of ...

###### Education

- BSc, Dokuz Eylul University
- MBA, Texas A&M University-Kingsville

###### Recent Feedback

- "Thanks"
- "Thanks"
- "This is a great help...Thank you"
- "Thanks for the advice!"
- "Oh my gosh u are awesome... A++"

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.