## Price Elasticity of Demand

A coefficient that represents the relationship between a change in price and any consequential change in demand.

Expressed as:

$E=ΔPΔQ $## Cross Price Elasticity of Demand

Similar to price elasticity of demand, but represents the change in quantity of an alternative or substitute product as a consequence of change in price of another.

Expressed as

$E_{xy}=ΔPyΔQx ×QxPy $For example, an increased price in my product portfolio might result in my customer choosing to buy a competitor product, or a slightly cheaper product of my own (cannibalisation).