Daffodil International University

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

Title: Weak Substitute Goods.
Post by: Md. Alamgir Hossan 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%.