Question

Good Y is a substitute of good X. the price of Y falls . Explain the chain of effects of this change in the market of X.

Answer 1

If price of goods Y falls then demand of goods Y will starting increasing due to negative relation between price and demand. After falling in the price of Goods Y demand of X goods will start declining becuase Y is a substitue goodsof X and there is a positive relation between price of X goods anf demand of goods Y.