If the amount of a commodity purchase remains unchanged when the price of another commodity changes, the cross elasticity of demand between them is:

CA Foundation · Business Economics · MTP · September 2026
If the amount of a commodity purchase remains unchanged when the price of another commodity changes, the cross elasticity of demand between them is:
(A) A. negative,
(B) B. positive
(C) C. zero
(D) D. 1

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. zero

Topics: Theory of Demand and Supply

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