Question

4. explain the effect of change in price of substitute goods on quantity demanded.

Answer 1

Answer:

Substitutes are goods where you can consume one in place of the other. The prices of complementary or substitute goods also shift the demand curve. ... When the price of a substitute good decreases, the quantity demanded for that good increases, but the demand for the good that it is being substituted for decreases.

i hope this helps you.

please mark this as brainliest answer

Answer 2

ANSWER

1. If the supply of a substitute commodity increase, the price of the substitute goods will increase and then the original product's supply will become less and hence the same quantity of substitute goods will be sold at a higher price.

2.A change in the price of a substitute-in-production causes a change in supply and a shift of the supply curve. An increase in the price of one substitute good causes a decrease in the supply of the other.

A decrease in the price of one substitute good causes an increase in the supply of the other.

HOPE THIS HELPS YOU AND IF SO,THEN PLEASE FOLLOW ME AND MARK THIS AS THE BRAINLIEST ANSWER