If cross-price elasticity between two products is zero, the goods are best described as:

CA Foundation · Business Economics · PYQS · January 2026
If cross-price elasticity between two products is zero, the goods are best described as:
(A) A. Close substitutes
(B) B. Totally unrelated
(C) C. Perfect substitutes
(D) D. Complements to each other

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Totally unrelated

Topics: Theory of Demand and Supply

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