Economy, asked by mailbeawar, 4 months ago

conclusion on price effect on substitute goods​

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Answered by Anonymous
13

Answer:

If price goes up for one thing, the other product will usually increase in quantity of demand because people will pay for the cheaper of the two. ... It may be noted that when there is a fall (or rise) in the price of good X, the substitution effect always leads to an increase (or decrease) in its quantity demanded.

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