Daffodil International University
Faculties and Departments => Business & Entrepreneurship => Topic started by: Md. Alamgir Hossan on April 13, 2017, 04:50:48 PM
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• 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%.