Question

How does change in the price of related commodities affect the supply of good?

Answer 1

The price of related goods is one of the other factors affecting demand. ... An increase in theprice of a good will increase demand for itssubstitute, while a decrease in the price of a good will decrease demand for its substitute.

Answer 2

The price of related goods is one of the other factors affecting demand. ... Substitutes are goods that satisfy a similar need or desire. a. An increase in the price of a good will increasedemand for its substitute, while a decrease in the price of a good will decrease demand for its substitute