The price of 1 kg. of tea is ₹ 50. At this price, 10 kg. of tea is demanded. If the price of coffee rises from ₹ 30 to ₹ 40 per kg., the quantity…
CA Foundation · Business Economics · PYQS · September 2024
The price of 1 kg. of tea is ₹ 50. At this price, 10 kg. of tea is demanded. If the price of coffee rises from ₹ 30 to ₹ 40 per kg., the quantity demanded of tea rises from 10 kg. to 15 kg. What will be the cross price elasticity of tea?
Suggested Answer and Working Notes:
Correct Answer: Option (C)
C. +1.5
Topics: Theory of Demand and Supply
Related Questions in this Topic
- If technological advancement occurs, supply curve will:
- The consumer surplus concept supports pricing strategy because:
- A key limitation of the Law of Diminishing MU is that it assumes utility is:
- If two goods X and Y have a positive cross elasticity, these goods are:
- At saturation point of TU curve, the slope of TU curve is _______