ECONOMICS
MARKETS AND PRICES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
will increase
|
|
|
will decrease
|
|
|
will remain unchanged
|
|
|
may increase, decrease or remain unchanged
|
Detailed explanation-1: -When two goods X and Y are substitutes, then as the price of the substitute good Y rises, the demand for good X increases and the demand curve for good X shifts to the right, as in Figure (b).
Detailed explanation-2: -Question: The price of a good X rises, causing the demand for good Y to fall. The two goods are therefore substitutes.
Detailed explanation-3: -In the given question, two goods X and Y are substitute goods. If the price of Good X increases, the demand for Good Y will increase. If the price of the X (substitute good) rises, then demand for X will fall. As X and Y are substitute goods, so the demand for Y will increase since it is a cheaper good now.
Detailed explanation-4: -As the price of Product X decreases, the demand curve for Product Y shifts to the right. X and Y are complementary goods. Good X and Good Y are complementary goods. That is, these goods are used together.