Most of us will be putting cows milk on our breakfast cereal in the morning, some may use goats milk or soya milk. This year you will be able to buy camel milk from Dubai. Camelicious, may be heading to a supermarket near you in 2010!
So what is the cross price elasticity of demand likely to be between cows milk and camel milk? Firstly the relationship will be substitutes, you will buy one or the other. The question is how strong will the substitution be? Will the figure produced from the formula be closer to 0 (meaning strong substitutes) or further away from 0 (meaning weak substitutes) - you decide.
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