Economy, asked by aryansehgal4956, 10 months ago

Suppose that good A is substitute of good B how will the increase in price of B will affect the demand curve of A

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Answered by rashidkhna73
4

Answer:

If A is a complement to B, an increase in the price of A will result in a negative movement along the demand curve of A and cause the demand curve for B to shift inward; less of each good will be demanded. ... This is in contrast to a substitute good, whose demand decreases when its substitute's price decreases.

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