A dealer sells only two brands of Motorcycle- Royal and Hero. It was observed that when the price of royal rises by 10% the demand for Hero…
CA Foundation · Business Economics · MTP · January 2025
A dealer sells only two brands of Motorcycle- Royal and Hero. It was observed that when the price of royal rises by 10% the demand for Hero increases by 15%. What is the cross elasticity of Hero against the Price of Royal?
Suggested Answer and Working Notes:
Correct Answer: Option (A)
A. + 1.5
Topics: Theory of Demand and Supply
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