If the price of coffee falls by 8% and the demand for Tea declines by 2%. The corss price elasticity of demand for Tea is

Related MCQs

• Tea and Coffee are perfect substitute of each other, given the price of Tea and Coffee being `100 and `200 per Kg. a consumer is prepared to buy 3 Kg. of each. If the price of tea remain same and the price of Coffee rises to `400 per kg. the demand for Tea goes to 6 Kg. and that of Coffee falls to 1Kg. The elasticity of substitution between Tea and Coffee is
• If price of coffee falls leading to increase in total outlay on coffee, the demand of coffee is
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