[ Prev ] [ Index ] [ Next ] SMART handout for AGEC618

Unweighted output-constant cross-price elasticity of demand


Definition

output-constant cross-price elasticity of demand: the elasticity of input i with respect to the price of input j, holding output constant



It gives the proportional change in the use of input i for a proportional change in the price of input j.


Relationship with APE (A):




Note


Example