At first glance, percent change may seem like a trivial concept. After all, why should investors care about the percentage increase or decrease in a stock's price when the rise and fall of dollar ...

To wrap up the calculation, subtract one from this exponent and then multiply by 100 to get the annual percentage change between the two numbers over that period of time. Here's the formula ...

This is reflected in the cross elasticity of the demand formula because both the numerator (percentage change in the demand for tea) and denominator (the price of coffee) show positive increases.