ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The demand for a good increases, if the price of one of its substitutes rises. The demand for a good decreases, if the price of one of its substitutes falls. A good that is consumed with another good.

Detailed explanation-2: -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-3: -If two goods are complements, this means that a rise in the price of one commodity will induce a downward shift in demand for the other commodity. The prices of complementary or substitute goods also shift the demand curve.

Detailed explanation-4: -As a result its demand rises. Opposite happens when price of the substitute good falls. When price of a complementary good rises its demand falls Since the given good is used jointly with the complementary good the demand of the given good also falls.

Detailed explanation-5: -Increased prices typically result in lower demand, and demand increases generally lead to increased supply. However, the supply of different products responds to demand differently, with some products’ demand being less sensitive to prices than others.