When the price of sugar is ₹ 60 per kg, its demand is 10 Kgs. Subsequently, if the price of coffee declines from ₹ 500 per kg to ₹ 450 per Kg, the…
CA Foundation · Business Economics · PYQS · May 2026
When the price of sugar is ₹ 60 per kg, its demand is 10 Kgs. Subsequently, if the price of coffee declines from ₹ 500 per kg to ₹ 450 per Kg, the usage of sugar rises from 10 kgs to 15 kgs. Calculate the cross price elasticity.
Suggested Answer and Working Notes:
Correct Answer: Option (A)
A. 5
Topics: Theory of Demand and Supply
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