Change in demand of a commodity due to change in the price of substitute is called ______.

price elasticity

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income elasticity

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cross elasticity

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none of the above

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Solution

The correct option is A cross elasticity
Change in demand of a commodity due to change in the price of substitute is called cross elasticity. For example, change in demand of tea due to change in the price of coffee is called cross elasticity.

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Change in demand of a commodity due to change in the price of substitute is called ______.

The correct option is A cross elasticityChange in demand of a commodity due to change in the price of substitute is called cross elasticity. For example, change in demand of tea due to change in the price of coffee is called cross elasticity.

The correct option is A cross elasticity
Change in demand of a commodity due to change in the price of substitute is called cross elasticity. For example, change in demand of tea due to change in the price of coffee is called cross elasticity.