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| 1. |
"The demand curve of a commodity will not obey the law of demand, i.e., it will not slope downwards if there is a rise in the price of substitute goods". Comment. |
| Answer» Solution :The given statement is correct. With rise in PRICE of substitutes, the demand CURVE of the commodity MAY not OBEY the law of demand because demand curve is drawn on an assumption that there is not change in other determinates of demand. | |