Solved UPSC CDS/OTA Question
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Q · Law of ElasticityMedium · 45s
Statement: If the cross elasticity of demand between two goods is positive, then these goods are:
TopicLaw of Elasticity
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
The complete worked solution.
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Cross elasticity > 0 indicates that an increase in price of one good raises demand for the other – they are substitutes.
Final Answer: Option B — Substitutes