Explain the relationship between : (i) Prices of other goods and demand for the given good , (ii) Income of the buyers and demand for a good.

Explain the relationship between : (i) Prices of other goods and deman

1.	Explain the relationship between : (i) Prices of other goods and demand for the given good , (ii) Income of the buyers and demand for a good.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :(i) If the two <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> are substitues, then a <a href="https://interviewquestions.tuteehub.com/tag/fall-983217" style="font-weight:bold;" target="_blank" title="Click to know more about FALL">FALL</a> in price of one good leads to fall in <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> of the other good and vice-versa. On the other hand, if the two goods are complementary goods, a fall in price of one good leads to an increase in demand of the other good and vice-versa<br/>(ii)In case the good is a normal good, a rise in income of the consumer leads to an increase in demand for the good and vice-versa. <br/>If the good is an inferior good, a rise in income of the consumer leads to a decrease in demand of the commodity and vice-versa.</body></html>