The cross elasticity of substitute goods is generally

Related MCQs

• Cross elasticity of a nearly perfect substitute products will be
• Goods which are perfect substitute of each other will have elasticity of substitution…...
• The cross elasticity of complementary goods is generally
• 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 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
• Two commodities X and Y goods can be inferred as close substitute of each other if –
• The income elasticity of demand of inferior goods is generally
• The income elasticity of demand of normal goods is generally
• 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