Q. 9

If the pric

Answer :

An increase in price of a substitute (y) of goods (x) will directly affect the equilibrium price and quantity of goods (x). Changes in the price of one substitute good tends to change the demand for another substitute good. The demand for good X increased due to the increase in the price of good Y. This situation causes an increase in the price of good X due to excessive demand.



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
caricature
view all courses
RELATED QUESTIONS :

What is the minimEconomics - Board Papers