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प्रश्न
If commodity X and Y are complementary goods , what will be the cross elasticity of demand?
उत्तर
If commodities X and Y are complementary items, the cross-elasticity of demand will be negative. This means that increasing the price of X would decrease the demand for Y, and vice versa.
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संबंधित प्रश्न
Give economic terms:
Degree of responsiveness of a change in quantity demanded of one commodity due to a change in the price of another commodity.
Identify & explain the concept from the given illustration.
At Amulya Café, the demand for tea increased by 5% due to a 10% rise in the price of coffee.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Calculate elasticity of demand on the basis of the following data.
| Price (Rs.) | Quantity (Kg) |
| 10 | 20 |
| 20 | 15 |
- Calculate the elasticity of demand.
- Is the demand elastic or inelastic?
Define the term price elasticity of demand.
If prices of salt and coffee increase by the same proportion, will their quantity demanded behave in the same manner? Explain by giving reasons.
Price elasticity of demand of good X is −2 and of good Y is −3. Which of the two goods has more price elasticity and why?
How is the price elasticity of demand of a commodity is affected by the number of its substitutes.
