Explain the effect of the change in the prices of related goods on the

1.	Explain the effect of the change in the prices of related goods on the demand for a given good
Answer» (i) Change in price of substitute goods: There is positive or direct relationship between the price of substitute commodity and demand for a good. If price of substitute rises the demand for a commodity also rises and vice versa.(ii) Change in price of complementary goods: There is negative or indirect relationship between the price of complementary commodity and demand for a good. If price of complement ary good rises the demand for a commodity also falls and vice versa.

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