What is the relation between Good- X and Good-Y in each case, if with fall in the price of Good-X demand for Good-Y (i) rises, and (ii)falls? Give reason.
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Explanation:
(i) If with fall in the price of X, demand for good Y rises, they are complementary goods. For example: Car and petrol. When price of car decreases, demand for petrol increases.
(ii) If with fall in the price of X, demand for y falls, they are substitute goods, For example: Tea and Coffee. When price of tea falls, demand for coffee falls.
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