Conclusion of GST & it's impact on GDP

Dear student,

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Mr. Mohan the marketing head of AVJ Ltd is sitting scratching his head over his price?strategy with new substitutes coming for the product of his company. If ?X? is the product o?the company and ?Y? the new substitute, his marketing research team has revealed that the?demand for ?X? fell from140 k.g. to 120 k.g. when the price of ?Y? was decreased from its?current price of Rs. 65 per k.g. to Rs. 60 per k.g. ?

Answer the following questions on the basis of the above information

1. Determine the cross elasticity between the two goods ?X? and ?Y?

2. Comment upon the cross elasticity determined and give an example ?

3. Draw a graphically the above information.
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