ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Prices or availability of substitutes
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Prices or availability of complementary goods
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Change in the weather or season
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Change in the number of buyers
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Detailed explanation-1: -Substitutes are goods that satisfy a similar need or desire. a. An increase in the price of a good will increase demand for its substitute, while a decrease in the price of a good will decrease demand for its substitute.
Detailed explanation-2: -Changes in prices come from shifts in market supply, market demand, or both. Economists use comparative statics to predict changes in prices. This technique explains how changes in exogenous variables cause shifts in supply and/or demand curves, which lead to changes in prices.
Detailed explanation-3: -With increase in the price of the substitute of Good-X, demand curve of Good-X will shift to the right. Accordingly equilibrium price and quantity of Good-X would tend to increase.
Detailed explanation-4: -A change in the price of a substitute-in-consumption causes a change in demand and a shift of the demand curve. An increase in the price of one substitute good causes an increase in demand for the other. A decrease in the price of one substitute good causes a decrease in demand for the other.