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Q. |
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 |
A. | 1 |
B. | 4 |
C. | 5 |
D. | 3 |
Answer» C. 5 |
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Fundamentals of Economics and ManagementNo comments yet