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How will an increase in price of tea affect the demand for sugar? - Economics

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Question

How will an increase in price of tea affect the demand for sugar?

Very Short Answer
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Solution

Effect on Demand:

  • When the price of tea increases, people may consume less tea.
  • Since sugar is commonly used with tea, the demand for sugar will also decrease, even though its price has not changed.
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Chapter 2: Demand and Law of Demand - TEST YOURSELF QUESTIONS [Page 26]

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Frank Economics [English] Class 12 ISC
Chapter 2 Demand and Law of Demand
TEST YOURSELF QUESTIONS | Q 11. (b) | Page 26
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