Economy, asked by kumarbhavin171, 6 hours ago

what effect is working when the price of good falls and consumers tend to buy it instead of goods​

Answers

Answered by richitavermadpsv
6

Answer:

hope it's helpful to you!

Explanation:

For normal goods, the income effect and the substitution effect both work in the same direction; a decrease in the relative price of the good will result in an increase in quantity demanded both because the good is now cheaper than substitute goods, and because the lower price means that consumers have a greater total .

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