Free demo

Pricing and Retail Definitions for eCommerce

Cross-price elasticity

Category/tag: Pricing

Added 19.09.2022

Cross-price elasticity measures the percentage change in sales of one good (product A) in response to a change in the price of another good (product B). Cross-price elasticity can be negative, neutral or positive. If there is a complementary relationship between two products, the cross-price elasticity is negative (see complementary goods). Cross-price elasticity is often used for products within a company's own range, but can also be applied to competitor products.