English

Change in the Price of Substitute Goods Affects the Demand for Another Goods. - Economics

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.
shaalaa.com
  Is there an error in this question or solution?
2014-2015 (March)

APPEARS IN

Video TutorialsVIEW ALL [1]

Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×