Question

Aarti demanded more sugar, as the price of jaggery increased. identify and explain the concept​

Answer 1

"Aarti demanded more sugar, as the price of jaggery increased" it means that,

• Aarti demanded more sugar as the price of jaggery increased the concept above is that of a substitute demand
• what is a substitute? It is a product or service which can be easily replaced with other goods or services in case of unavailability of the letter.
• Goods are said to be substitutes if they serve and can be used for the same purpose. In this case, sugar can be used as a substitute for jaggery as both of these products serves the purpose of sweetening the food will stop if the price of one good increases then demands for its substitute is likely to rise which means that substitute has a positive cross elasticity of demand.