Author Topic: Weak Substitute Goods.  (Read 856 times)

Offline Md. Alamgir Hossan

  • Hero Member
  • *****
  • Posts: 837
  • Test
    • View Profile
Weak Substitute Goods.
« on: April 13, 2017, 04:50:48 PM »

•   If goods are weak substitutes, there will be a low cross elasticity of demand.
•   Example, if price of Daily Mail increases 10%, demand for the Financial Times may only increase 1%. Therefore, the cross elasticity of demand is 0.1
•   If price of margarine increases 10%, demand for butter may rise 2%.