Applications of Cross Price Elasticity of Demand
Determine by how much the demand for Florida Indian River oranges would change as a result of a 10 percent increase in the price of Florida interior oranges, and vice versa.
Type of Orange: Florida Indian; River Florida; Interior California
Florida Indian River: -3.07 +1.56 +.0.01
Florida Interior: +1.16 -3.01 +0.14
California: 10.18 +0.09 -2.76