Cross price elasticity of demand formula examples It’s calculated as New Quantity/Old Quantity – 1. A positive cross price elasticity denotes that two goods are substitutes. The subsequent price and quantity is (P2 = 9, Q2 = 10). It is a critical concept in economics that illustrates the relationship between two goods – showing whether they are […] Feb 16, 2025 · Price Elasticity of Demand Formula. 67. If the Oct 3, 2024 · 4. org and *. kastatic. Example #1. Cross price elasticity is calculated by dividing the percentage change of quantity demanded for good X by the percentage change in price of good Y.