A 20 paisa per cup increase in price of coffee from 50 paisa to 70 paisa per cup increases demand for tea from 50 cups to 100 cups. Find crossed price elasticity.
Answers
Answered by
3
Answer:
elastic. What will be the change in price if demand rises from 50 per unit to 70 per unit? Answer: There will be no change in price as ...
Numerical Example to Explain Cross Elasticity of Demand. Tea and coffee are substitutes to each other. If the price of coffee rises from Rs.10 per 100 grams to ...
Answered by
22
Explanation:
It is only because of scarcity of resources that economic problems exist. ... Resources are limited and have alternative uses, and human wants are unlimited. This means that they can be employed for the production of different goods.
Similar questions