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To find the cross-price elasticity of demand between two goods, we use the formula:

\[
\text{Cross-Price Elasticity of Demand} = \frac{\%\ \text{change in quantity demanded of Good D}}{\%\ \text{change in price of Good C}}
\]

### Given Information:
- The price of Good C rises by 50%, so \(\%\ \text{change in price of Good C} = 50\%\).
- The quantity demanded of Good D increases by 60%, so \(\%\ \text{change in quantity demanded of Good D} = 60\%\).

### Calculation:
\[
\text{Cross-Price Elasticity of Demand} = \frac{60\%}{50\%} = 1.2
\]

So, the cross-price elasticity of demand between the two goods is **1.2**.

This positive cross-price elasticity indicates that Goods C and D are **substitute goods** since an increase in the price of Good C leads to an increase in the demand for Good D.

Would you like more details on this concept, or do you have further questions?

### Related Questions:
1. What does it mean if the cross-price elasticity of demand is negative?
2. How would you interpret a cross-price elasticity of 0?
3. Can cross-price elasticity be used to determine whether goods are complements or substitutes?
4. How would the elasticity change if the demand for Good D only increased by 30%?
5. What are examples of complementary goods in terms of cross-price elasticity?

### Tip:
Cross-price elasticity helps businesses understand how the pricing of one product may affect the demand for a related product, useful for pricing and product placement strategies.

If a rise in the price Good C of 50% a pound causes the quantity demanded of Good D to increase by 60%, what is the cross-price elasticity of demand between the two goods? Round your answer to one decimal place.

Determine the cross-price elasticity of demand when a 50% increase in the price of Good C results in a 60% increase in the demand for Good D. This problem explores elasticity concepts, ideal for college-level economics students.

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