question archive Explain how the cross-elasticity of demand may provide insight into the definition of a market

Explain how the cross-elasticity of demand may provide insight into the definition of a market

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Explain how the cross-elasticity of demand may provide insight into the definition of a market.

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Cross-elasticity of demand provides insight into the definition of the market because it helps us understand the relationships of commodities whether it is substitutes or complementary goods. The concept of cross-elasticity of demand is useful in handling inter- commodity demand relations, a useful insight on the type of market.