You must calculate your price elasticity within the context of the marketplace. For example, the greater the number of substitute products available, the greater the elasticity will be.

The cross price elasticity of demand measures how the demand for one good responds to price changes for another good.

So, to calculate the price elasticity you need to figure out how much of a change (expressed in percentage terms) in what you sell results from a given change in price (also expressed in percentage ...

Calculate the Cross Elasticity of Demand To calculate the cross elasticity of demand, divide the percentage change of the quantity purchased by the percentage change in the price of another good.