Question

Explain with the help of a diagram the effect of the following changes on

the demand of the Commodity X.

(i) A fall in the price of its (Commodity X’s) substitute good

(ii) A fall in the income of its buyer​

Answer 1

Explanation:

1. substitute goods are those goods which can be replaced eg tea n coffee. if price of coffee falls then demand of tea will also falls because people will start purchasing more coffee.
2. if income of the buyer falls then demand also falls as purchasing power of customer will fall