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Commentary Number 1 Cross Elasticity of Demand (XED) measures the relative sensitivity of a change in the quantity of a good with respect to a change in the price of another good. Here we will be talking about substitute and complements of goods. If goods are substitute to each other, when price of good A increase, demand for good B would increase giving XED a positive value. Same goods with different brand are normally substitutes. If goods are compliments of each other, the increase of good A would lead to a decrease in demand for good B giving XED a negative value. Badminton racquets and shuttlecocks are examples of these. Revenue and Total Revenue (TR) are some of the most important part in business and both these concepts come from knowing how to apply the knowledge of Price Elasticity. Revenue is money earned by a firm's business activity and the total income...

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