Daffodil International University

Faculties and Departments => Business & Entrepreneurship => Topic started by: Md. Alamgir Hossan on April 13, 2017, 04:50:26 PM

Title: Close Substitute Goods
Post by: Md. Alamgir Hossan on April 13, 2017, 04:50:26 PM

•   If two goods are close substitutes, there will be a high cross elasticity of demand.
•   Example, if price of Sainsbury’s flour increases 10%, demand for Hives flour may increase 20%. Therefore, the cross elasticity of demand is +2.0