Unformatted text preview: i) Substitutes : as in case of tea and coffee or different brands of toothpaste, television sets etc. These goods are symbolized as B S which implies that B is a substitute of A. In this case, whenever the price of A rises the demand for A will fall but that of B will rise. Therefore the relation between P A and Q B is direct . Hence the sign of elasticity ratio will be positive. This can be illustrated as: P A  Q A  Q BS 10  8 8 12  6  10...
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 Fall '10
 
 Price Elasticity, Supply And Demand, Cross Elasticity, elasticity ratio

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