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To calculate the coefficient for the cross-price elasticity of demand, take the percentage change in quantity demanded of product X and divide by the percentage change in the____________of product Y.

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Final answer:

The cross-price elasticity of demand is calculated by dividing the percentage change in quantity demanded of a product by the percentage change in price of a different product, illustrating the interrelationship between demands for two goods.

Step-by-step explanation:

To calculate the coefficient for the cross-price elasticity of demand, take the percentage change in quantity demanded of product X and divide by the percentage change in the price of product Y. The cross-price elasticity of demand measures the responsiveness of the quantity demanded for one product in relation to a change in price for another product. It reflects the interdependence of demand for different goods and indicates whether goods are substitutes or complements.

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