Cross elasticity
Bachelor of Business Studies (BBS) — First Year
Subject: Microeconomics for Business (MGT 207)
Unit 3: Elasticity of Demand and Supply
Academic Year: 2083/84
Topic Objectives
After studying this topic, students should be able to:
- Explain the scope and key elements of cross elasticity.
- Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.
Curriculum Scope
- Meaning and degrees
- Percentage/proportionate and average calculation methods
Detailed Microsyllabus
Cross elasticity
- Response of demand for one good to the price of another.
- Positive, negative and zero relationships.
- Substitutes, complements and unrelated goods.
Measurement and application
- Percentage method and average or arc method.
- Identify the goods and the price change consistently.
- Use cross responsiveness in product and competition analysis.
Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.
Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.