Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
30.6k views
in Economics by (106k points)

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, (ii) fall? Give reasons.

1 Answer

0 votes
by (323k points)
selected by
 
Best answer

(i) If with fall in the price of X, demand for good Y rises, they are complementary goods. For example: Car and petrol. When price of car decreases, demand for petrol increases.

(ii) If with fall in the price of X, demand for y falls, they are substitute goods, For example: Tea and Coffee. When price of tea falls, demand for coffee falls.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...