<p>If you calculate XED you have two relative   terms.</p>

<p>$XED=\frac{\Delta q_i}{q_i}\cdot \frac{p_j}{\Delta p_j}$ </p>

<p>It is right that in your case $\frac{\Delta q_i}{q_i}=\frac{2-1}{1}=1$</p>

<p>Now it depends on the current price of good j and the change of the price how large XED is. From the relative change of the demand you cannot conlcude to the level of XED.</p>

CC BY-SA 3.0
2016-07-15T05:10:46.867Z
2016-07-15T05:10:46.867Z
callculus42
<p>If I try to calculate cross elasticity of demand (XED or CED) with individual demand quantity, it seems to break down since even small increase when the base number is small is a big increase in percentage. e.g. 1 to 2 is a 100% change.</p>

<microeconomics><mathematical-economics>
To calculate cross elasticity of demand, does percentage change in quantity demanded have to be market demand instead of individual demand?
StevenJac
# To calculate cross elasticity of demand, does percentage change in quantity demanded have to be market demand instead of individual demand?

(Asked by: username_0 on 2016-07-15)

If I try to calculate cross elasticity of demand (XED or CED) with individual demand quantity, it seems to break down since even small increase when the base number is small is a big increase in percentage. e.g. 1 to 2 is a 100% change.

**Tags:** microeconomics, mathematical-economics

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## 1 answers

### Answer by username_1 on 2016-07-15. Score: 1

If you calculate XED you have two relative terms.

$XED=\frac{\Delta q\_i}{q\_i}\cdot \frac{p\_j}{\Delta p\_j}$

It is right that in your case $\frac{\Delta q\_i}{q\_i}=\frac{2-1}{1}=1$

Now it depends on the current price of good j and the change of the price how large XED is. From the relative change of the demand you cannot conlcude to the level of XED.


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