Question

Explain how demand for a given goods is affected by change in prices of substitute goods.​

Answer 1

Answer:

An increase in the price of a good will increase demand for its substitute, while a decrease in the price of a good will decrease demand for its substitute. ... An increase in the price of a good will decrease demand for its complement while a decrease in the price of a good will increase demand for its complement.

Explanation:

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Answer 2

If the price of the substitute goods increases,the demand for the concerned good or commodity will increase and vise versa.

Explanation:

In Microeconomics,the demand for any good or commodity has a direct and positive relationship with the price of its substitute goods.If the price of the substitute goods increases,the consumers or buyers will shift away from those goods and prefer to purchase more of the concerned good thereby increasing its consumer demand(assuming the price of the concerned good or commodity as fixed or constant).Now,in contrast,if the price of the substitute goods decreases relative to the price of the concerned good,then the demand for the concerned good will understandably decrease as consumers or buyers will prefer more of the cheaper substitute products thereby increasing their demand and decreasing the demand of the concerned good or commodity.