1.

"The demand for a commodity always increases whenever the price of other goods rises". Do you agree with the given statement ?

Answer»

Solution :No, I do not AGREE with the given STATEMENT. The DEMAND for a commodity will INCREASE in the price of other goods, only when such other goods are SUBSTITUTE goods. However, demand for the commodity will fall with increase in the price of other goods, if such other goods are complementary goods.


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