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InterviewSolution
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How is the demand for a good affected by a rise in the prices of other goods ? Explain OR Does a rise of other good have same effect on demand for a commondity ? |
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Answer» No, rise in prices of other goods does not have same effect on demand for a commodity. (i) In case of rise in price of substitude goods, demand for the given commodity rises (ii) In case of rise in price of complementary goods, demand for the given commodity falls. (iii) In case of rise in price of unrelated goods, there is no change in demand for the given commodity. |
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