Q. 14 A5.0( 2 Votes )

Good Y is a subst

Answer :

The demand of a commodity and the price of its substitute goods are directly related to each other. As it is given in question that X and Y are substitute goods so when the price of Y will fall, the demand of X (substitute of Y) will decrease. As a result, demand curve of X will shift towards the left.

The figure shows a situation of decrease in demand.

In the given diagram the original demand curve of commodity X is shown by DD curve, with the fall in the price of substitute good Y the demand of X falls at the same price and so the demand curve shifts from DD to D0D0 and the demand for the given good falls from Q to Q0.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses

GEconomics - Board Papers

IEconomics - Board Papers

If nominal incomeEconomics - Board Papers

An economy is in Economics - Board Papers

Sale of petEconomics - Board Papers

FEconomics - Board Papers

An economy Economics - Board Papers