Cross elasticity of a nearly perfect substitute products will be

Related MCQs

• Goods which are perfect substitute of each other will have elasticity of substitution…...
• 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
• The cross elasticity of substitute goods is generally
• Goods which are perfect substitute of each other will have rate of substitution
• Goods which are not perfect substitute of each other but have to be consumed in a fixed ratio will have rate of substitution
• If the cross elasticity between two products is positive then we can say that
• If the cross price elasticity of demand for two product is negative, then the two products are ……………….
• Cross elasticity of unrelated products will be
• Cross elasticity of complementary products will be
• If two goods are perfect substitutes for one another, the elasticity of substitution will be