Advertisements
Advertisements
Question
Change in the price of substitute goods affects the demand for another goods.
Short Note
Solution
Change in the price of sinstitude goods affects the demand for another goods this is because
(i) In the case of substitude when price of commodity fall a consumer find the commodity cheaper compared to its substitude and demand is more, this is called substitution effects.
(ii) Thus, Market demand gets influenced by the price of substitutes.
(ii) Thus, Market demand gets influenced by the price of substitutes.
shaalaa.com
Is there an error in this question or solution?