Independent goods
Encyclopedia
Independent goods are goods that have a zero cross elasticity of demand
. Changes in the price of one good will have no effect on the demand
of an independent good. A person's demand of nails is independent of his or her demand for bread.
Cross elasticity of demand
In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good. It is measured as the percentage change in demand for the first good that occurs in response to a percentage change in...
. Changes in the price of one good will have no effect on the demand
Demand (economics)
In economics, demand is the desire to own anything, the ability to pay for it, and the willingness to pay . The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time....
of an independent good. A person's demand of nails is independent of his or her demand for bread.