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
2.2k
0
Do you find this helpful?
19

Discussion

No comments yet