What is the relation between good x and y in each case , if with the rise in price of x demand for good y (i) rises and(ii) falls ?Given reason.

What is the relation between good x and y in each case , if with the r

1.	What is the relation between good x and y in each case , if with the rise in price of x demand for good y (i) rises and(ii) falls ?Given reason.
Answer» SOLUTION :(i)Goodsx and y aresubstitutes . It is because when priceof X rises , y becomes relatively cheaper in relation to y. The consumer buys more of by reducing DEMAND for x. (ii) Goodsx andy arecomplementary GOODS . It because x andy areused jointly .When with the rise inprice of GOOD x , demand forx falls, demand fory alsofalls.