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Commerce · Q843

Economics

Graduate and Post Graduate · Commerce · question 843

Q843

If coffee and tea are substitutes, what is the cross-price elasticity of demand for coffee with respect to the price of tea?

A.
It is greater than 1
B.
It is negative
C.
It is a positive
Answer
D.
They are both inferior goods

Answer: Option C

Solution

Answer: Option C
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