Solution : (i) A rise in price of Substitute good <br> (a)Substitute goods are the goods that can be used in place of another goods and give the same satisfication to a consumer. <br> <img src="//d10lpgp6xz60nq.cloudfront.net/physics_images/FM_M_ECO_XII_P1_C03_E02_062_S01.png" width="80%"> <br> (b) There would always exist a direct relationship between the price of substitute goods and demand for given commodity. <br> (c ) Due to rise in price of substitute (Say Coffee from Rs 500 to Rs 550), the demand of tea and shift rightward from DD to `D_(1)D_(2)` as shown in given figure: <br> (ii) A rise in price in Complementary good <br> <img src="//d10lpgp6xz60nq.cloudfront.net/physics_images/FM_M_ECO_XII_P1_C03_E02_062_S02.png" width="80%"> <br> (a) Complementary goods are those which are useless in the absence of another good and which are demanded jointly.<br> (b) There would always exist an inverse relationship between price of complementary goods and demand for given commodity. <br> (c ) Due to rise in price of Comple mentary good (Say Tea from Rs 500 to Rs 550), the demand of Sugar shift leftward from DD to `D_(1)D_(1)` , as shown in given figure.
Solution
(i) The demand for a commodity and unfavourable change in taste of the buyer are inversely related to each other. When there is an unfavourable change in taste of the buyer for the commodity, the demand for the commodity falls at the same price and as a result, the demand curve shifts to the left. The following diagram shows the effect :
In the diagram, demand curve of X is shown by the DD curve. With an unfavourable change in taste of the buyer for the commodity, the quantity demanded of good X, falls from OQ to OQ1 at the same price OP. The demand curve shifts leftward from DD to D1D1
(ii) The demand for an inferior good and change in the income of the buyers are inversely related to each other. When there is a fall in the income of the buyers, the demand for the inferior good rises and as a result, the demand curve shifts to the right.The following diagram shows the effect :
In the diagram, demand curve of X (inferior good) is shown by DD curve. With a fall in the income of the buyer, the quantity demanded of inferior goods rises from OQ to OQ1 at the same price OP. The demand curve shifts rightward from DD to D1D1.