Explain the effect of change in price of substitute goods on supply curve ?
Answers
Answered by
2
- If supply of a substitute commodity increase and then the original products supply will become less and hence the same quality of substitute goods will be sold at higher price
- 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 goods causes a decrease in the supply of other
- A decrease in the price of one substitute good causes an increase in the supply of other
[Hope this helps you.../]
Similar questions