What does a zero cross-price elasticity of demand indicate?

Economics Elasticity Of Demand Questions Medium



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What does a zero cross-price elasticity of demand indicate?

A zero cross-price elasticity of demand indicates that there is no relationship between the change in price of one good and the quantity demanded of another good. In other words, the demand for one good is not affected by the price changes of another good. This suggests that the two goods are not substitutes or complements, and there is no substitution effect or complementary effect between them.