May 2021 1 23 Report
Cross Price Elasticity Question?

So i'm a little confused as to how to approach this problem:

Define the cross price elasticity of good i with respect to the price of good j as

Eij = ( d(xi) / d(pj) ) * ( pj/xi ).

Would this just be d(xi)/xi = d(pj)/pj or am I doing something completely wrong?

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