Cross elasticity is higher the more perfect two goods are as substitutes.

Name: Cross elasticity is higher the more perfect two goods are as substitutes.
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Cross elasticity of demand measures how the quantity demanded of one good responds to a change in price of another good. The more perfect two goods are as substitutes, the higher the cross elasticity, because consumers will more readily switch from one good to the other if the price changes.

Cross Elasticity Is Higher the More Perfect Two Goods Are