"X" and "Y" are substitute goods. Explain the effect of a fall in the price of X on the demand of Y.

"X" and "Y" are substitute goods. Explain the effect of a fall in the

1.	"X" and "Y" are substitute goods. Explain the effect of a fall in the price of X on the demand of Y.
Answer» Solution :Substitutes GOODS are the goods which are used in PLACE of one another. A FALL in price of X will lead to an increase in its demand and thus leading to a DECREASE in demand of good Y as these goods are used in place of one another.