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प्रश्न
X and Y are complementary goods. The price of Y falls. Explain the chain of effects of this change in the market of X.
उत्तर
Demand for a commodity X in relation to the price of a complementary good Y:
An increase or decrease in the prices of complementary goods inversely affects the demand for the given commodity. Assume X and Y as two complementary goods, the price of good Y falls, it will lead to a rise in the demand for good X. As the price of good Y falls, the demand curve shift from the equilibrium position and move towards leftwards from D1 to D2.
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संबंधित प्रश्न
Determination of equilibrium price under perfect competition.
Giving reason, state whether the following statement is true or false.
When equilibrium price of a good is less than its market price, there will be competition among the sellers.
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Write explanatory answer.
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Define or explain the following concept:
Equilibrium price
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Under perfect competition, price is determined by equilibrium of demand and supply.
Fill in the blank with appropriate alternative given below
The price at which demand and supply equate to each other is called _______ price.
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Qd = 1700 – 2P
Qs = 1300 + 3P
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When the equilibrium price is greater than the market price there will be excess supply in the market.
Answer the following question:
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