What is the relation between good X and good Y in each case, if with fall in the price of X demand for good Y (i) rises and (ii) falls ? Give reason.

What is the relation between good X and good Y in each case, if with f

1.	What is the relation between good X and good Y in each case, if with fall in the price of X demand for good Y (i) rises and (ii) falls ? Give reason.
Answer» <html><body><p></p>Solution :(i) The two goods are complementary goods <a href="https://interviewquestions.tuteehub.com/tag/since-644476" style="font-weight:bold;" target="_blank" title="Click to know more about SINCE">SINCE</a> a fall in <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> of X <a href="https://interviewquestions.tuteehub.com/tag/leads-540453" style="font-weight:bold;" target="_blank" title="Click to know more about LEADS">LEADS</a> to a rise in demand of Y or there is negative <a href="https://interviewquestions.tuteehub.com/tag/relation-1183220" style="font-weight:bold;" target="_blank" title="Click to know more about RELATION">RELATION</a> between price of one good and the demand for another.<br/>(ii) The two goods are substitute goods as a fall in price of X leads to a fall in demand for Y or there is a positive relationship between price of X and demand for Y, which is the <a href="https://interviewquestions.tuteehub.com/tag/property-1170155" style="font-weight:bold;" target="_blank" title="Click to know more about PROPERTY">PROPERTY</a> of substitute goods.</body></html>