Advertisements
Advertisements
Question
If with the rise in price of good Y, demand for good X rises, the two goods are:
Options
Substitutes
Complements
Not related
Jointly
Advertisements
Solution
Substitutes
Explanation:
If the demand for good X rises with an increase in the price of good Y, it indicates that the two goods are substitutes. Substitute goods are those that can be used in place of each other. When the price of one good increases, consumers tend to buy more of the other good, which is now relatively cheaper. For example, if the price of tea (good Y) rises, the demand for coffee (good X) might increase as consumers switch to the cheaper alternative.
RELATED QUESTIONS
Symbolically, the functional relationship between Demand and Price can be expressed as ______.
The Law of Demand was introduced by ______.
Increase in demand is caused by
The movement on or along the given demand curve is known as ______
In case of relatively more elastic demand, the shape of the curve is
Explain the law of demand.
State and explain the law of demand with the help of a hypothetical schedule and graph.
Any statement about demand for a good is considered complete only when the following is/are mentioned in it:
When at a price of ₹ 5 per unit of a commodity, A's demand is for 11 units, B's demand is for 14 units and C's demand is for units (assuming that there are only three consumers in the market), the market demand is ______.
Giffen goods are richman's goods
If a good is inferior good, then purchases of that good will decrease when ______.
What is meant by the income effect of a fall in the prices of a commodity?
Explain four circumstances under which the law of demand does not operate.
The following table shows the amount of sugar bought by a household at different prices:
| Period | Price (₹ per kg) | Amount Bought (kg) |
| Jan. 2000 | ₹ 15 | 4 |
| Feb. 2000 | ₹ 16 | 5 |
Does the behaviour of household contradict the law of demand? Give reasons in support of your answer.
What does the term "ceteris paribus" mean in relation to the Law of Demand?
Which formula correctly expresses the factors that determine the demand for a commodity?
Which of the following is NOT an assumption of the Law of Demand ?
