Cross Elasticity Of Supply: Seldom Heard Of And Seldom Taught


  • Anthony J. Greco


This paper focuses on the cross elasticity of supply concept and incidentally on the cross elasticity of demand concept. The author reviews a body of contemporaneous and older textbooks in intermediate microeconomics and industrial organization/public policy and finds that cross elasticity of supply is and has been seldom discussed in such textbooks, while cross elasticity of demand tends to be discussed much more frequently. The author summarizes the discussion afforded to both cross elasticity of demand and cross elasticity of supply in intermediate microeconomics and industrial organization texts, pointing out the difficulties and limitations relative to these concepts in an attempt to ascertain why so much more coverage is given to cross elasticity of demand. Although some plausible explanations for the neglect of cross elasticity of supply are uncovered, future research may offer additional explanations.


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