Goods which are perfect substitute of each other will have elasticity of substitution…...

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
• Goods which are not perfect substitute of each other but have to be consumed in a fixed ratio will have rate of substitution
• Goods which are perfect substitute of each other will have rate of substitution
• If two goods are perfect substitutes for one another, the elasticity of substitution will be
• Cross elasticity of a nearly perfect substitute products will be
• Two commodities X and Y goods can be inferred as close substitute of each other if –
• The cross elasticity of substitute goods is generally
• If two goods are not substitutes at all for one another, the elasticity of substitution will be
• An individual is spending his entire income on two items A and B equally. If income elasticity of A is 4 what is income elasticity of B
• If an individual is spending his entire income on two items A and B in the ratio of 60:40. If income elasticity of A is 5 what is income elasticity of B