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Answer to Question #55276 in Finance for Saurabh Mishra
Question #55276
A) Suppose the monthly income of an individual increase from Rs. 20000 to 25000 which increase his demand for clothes from 40 units to 60 units. Calculate the income elasticity of demand.
B) Quantity demanded for tea has increased from 300 to 400 units with an increase in the price of the coffee powder from Rs 25 to Rs35. Calculate the cross elasticity of demand between tea and coffee.
B) Quantity demanded for tea has increased from 300 to 400 units with an increase in the price of the coffee powder from Rs 25 to Rs35. Calculate the cross elasticity of demand between tea and coffee.
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