Which of the following commodities has a zero cross elasticity of demand?

Price of bread will not affect the demand for jam

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Price of car will not affect the demand for petrol

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Price of milk will not affect the demand for cloth

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Price of ink will not affect the demand for pen

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Solution

The correct option is C
Price of milk will not affect the demand for cloth

Commodities which are not related to each other have a zero cross elasticity of demand. Any change in the price of milk will not affect the demand for cloth.

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