Advertisements
Advertisements
Question
A change in the price of ______ (Substitute / Complementary) goods directly affects the demand for a given commodity, while a change in the price of ______ (Substitute / Complementary) goods inversely affects the demand for a given commodity.
Fill in the Blanks
Advertisements
Solution
A change in the price of Substitute goods directly affects the demand for a given commodity, while a change in the price of Complementary goods inversely affects the demand for a given commodity.
Explanation:
A rise in the price of a substitute raises demand for the given good, whereas a rise in the price of a complementary good reduces its demand.
shaalaa.com
Is there an error in this question or solution?
