Final answer:
The cross-price elasticity of demand between smartphones and smartphone cases measures how the demand for one changes in response to the price change of the other, but specific data is required to calculate this. The elasticity is positive for complements and the formula involves dividing the percentage change in quantity demanded by the percentage change in price.
Step-by-step explanation:
The cross-price elasticity of demand measures the responsiveness of the quantity demanded of one good when the price of another good changes. This concept is used to determine whether two products are substitutes or complements. For the case of smartphones and smartphone cases, the cross-price elasticity would typically be positive if they are complements, indicating that an increase in the price of smartphones would decrease the demand for smartphone cases. However, without specific data, it's impossible to calculate the exact cross-price elasticity between smartphones and smartphone cases. To calculate cross-price elasticity, you'd use the formula: percentage change in quantity demanded of smartphone cases divided by the percentage change in the price of smartphones. An example calculation is shown where the cross-price elasticity for apples and oranges is calculated using the given percentages, resulting in a 1.2% decrease in demand for apples when the price of oranges falls by 3%.