New Enroll for RBI, PFRDA & NABARD Intro Class! April 18 at 9:15 PM

    Question

    If the price of coffee rises from Rs.45 per 250 gms per

    pack to Rs. 55 per 250 gram per pack, and as a result the consumer's demand for tea increases from 600 packe to 800 packs of 250 gms, then the cross elasticity of demand of ten for coffee is
    A 0.7 Correct Answer Incorrect Answer
    B 1.43 Correct Answer Incorrect Answer
    C 1.34 Correct Answer Incorrect Answer
    D 1.5 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    The correct answer is D

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