Question

explain price of the related goods as determinant of demand for a good
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Answer 1

Answer:

According to the law of demand, this implies an increase in demand follows a reduction in price and a decrease in demand follows an increase in the price of similar goods. The demand curve and the demand schedule help determine the demand quantity at a price level.

Answer 2

Answer:

When the price of a good that complements a good decreases, then the quantity demanded of one increases and the demand for the other increases. When the price of a substitute gooddecreases, the quantity demanded for that good increases, but the demand for the good that it is being substituted for decreases.