Q30. Explain the effect of change in prices of related goods on demand

1.	Q30. Explain the effect of change in prices of related goods on demand of a good.4 marks
Answer» Answer: An increase in the price of complementary goods leads to a DECREASE in the demand for GIVEN commodity and vice versa. For example if price of a complementary good (say PETROL) increases, then demand for given commodity (say car) will fall as it will be relatively costlier to USE both the goods together.

Q30. Explain the effect of change in prices of related goods on demand of a good.4 marks

Answer»

Answer:

An increase in the price of complementary goods leads to a DECREASE in the demand for GIVEN commodity and vice versa. For example if price of a complementary good (say PETROL) increases, then demand for given commodity (say car) will fall as it will be relatively costlier to USE both the goods together.

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Q30. Explain the effect of change in prices of related goods on demand of a good.4 marks

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