If the demand for beef rises by 5% as the price of chicken goes up by 20%, what is the cross-price elasticity of demand between beef and chicken?

Explanation

Cross-price elasticity of demand is calculated by dividing the percentage change in quantity demanded of one good by the percentage change in price of another good. Here, it is 5% divided by 20%, resulting in 0.25, indicating that beef and chicken are substitute goods.