The Cross Elasticity of Demand in Case of tea and Coffee

Quest
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The Cross Elasticity of Demand in Case of tea and Coffee
9/5/2011 10:33:04 PM

The Cross Elasticity of Demand in Case of tea and Coffee

a.Positive
b.Negative
c.Zero
d.Infinity

akhila sharma
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Re: The Cross Elasticity of Demand in Case of tea and Coffee
12/6/2011 8:42:58 PM

i think it is positive because as the price of tea inceases demand for coffee also increases ,

Vara Prasad
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Re: The Cross Elasticity of Demand in Case of tea and Coffee
11/6/2011 8:04:50 PM

Dear Sharma,

Coffee and tea are substitute goods so they enjoy positive cross elasticity of demand.It is the exception to law of demand.

akhila sharma
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Re: The Cross Elasticity of Demand in Case of tea and Coffee
12/6/2011 12:53:08 PM

so is that the correct answer

Vara Prasad
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Re: The Cross Elasticity of Demand in Case of tea and Coffee
12/6/2011 8:16:59 PM

Dear Sharma

Your answer is correct.

For new queries you can post them in forum

akhila sharma
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Re: The Cross Elasticity of Demand in Case of tea and Coffee
1/3/2012 9:44:54 PM

thank yu