ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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luxury good
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complementary good
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substitute good
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normal good
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Detailed explanation-1: -When the price of good A rises, people start to drink good B. In this case: Good B is a substitute good.
Detailed explanation-2: -Expert Answer Here A and B are substitutes for each other, if the price of A increases, then demand for B will increase. As a result, consumers will shift their consumption towards B, and demand for B will increase.
Detailed explanation-3: -If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.
Detailed explanation-4: -The relationship between price and quantity supplied is a direct relationship. Economists refer to this relationship as the law of supply. When the price of a good rises, the quantity supplied of that good will increase.