When the price of a commodity X falls the demand for X?Substitute commodities have positive relation, implying that a fall in the price of the substitute good Y will lead to a fall in the demand for good X.
Which will cause a change in the demand for commodity X?Increase in the price of the substitute commodity-Y would cause increase in the demand for X, implying a forward shift in demand curve for X. Conversely, decrease in the price of the substitute commodity-Y would cause backward shift in demand curve for X.
When price of commodity rises the demand for it Mcq?True. When the price of a commodity rises the demand will fall. Quantity demanded and price are inversely related this means that as the price of the goods increase the demand of that commodity decreases and vice versa. This is because of the law of diminishing marginal utility.
When the price of a substitute of commodity X rises the demand for X a Rises B falls C remains constant D None of the above?Correct Option: A
When price of substitute goods (say, coffee) rises, demand for the given commodity (say, tea) also rises at its same price. It leads to a rightward shift in the demand curve of the given commodity.
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