How does change in price of a substitute/complementary good affect the demand of the given good ? Explain with the help of an example.

How does change in price of a substitute/complementary good affect the

1.	How does change in price of a substitute/complementary good affect the demand of the given good ? Explain with the help of an example.
Answer» <html><body><p></p>Solution :There are two types of related <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> :- (i) Substitute goods, (ii) <a href="https://interviewquestions.tuteehub.com/tag/complementary-2532127" style="font-weight:bold;" target="_blank" title="Click to know more about COMPLEMENTARY">COMPLEMENTARY</a> goods. <br/>In case of substitute goods there is a positive relationship between price of one good and the <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> for another i.e as price of one good rises the demand for its substitute rises.<br/>On the other hand, in case of complementary goods there is a negative relationship between price of one good and the demand for its <a href="https://interviewquestions.tuteehub.com/tag/complement-925776" style="font-weight:bold;" target="_blank" title="Click to know more about COMPLEMENT">COMPLEMENT</a> i.e as price of one good rises the demand for its complement falls.</body></html>