Question

In case of substitute goods the demand for a good usually move in the ______ direction of the price of its substitutes.

पर्याय

• opposite

• same

• random

• none of these

Answer 1

In case of substitute goods the demand for a good usually move in the same direction of the price of its substitutes.

Explanation:

Demand for a good varies directly with the price of its substitute. For example, when the price of coffee rises, demand for tea usually rises as consumers switch to tea.