Correct Option: ACross Price Effect refers to effect on the demand for a given commodity due to a change in the price of a substitute commodity. A change (increase or decrease) in the price of substitutes directly affects the demand for a given commodity. 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. With decrease in price of substitute goods (coffee), demand for the given commodity (tea) also decreases. It shifts the demand curve of the given commodity towards left.
 When the price of substitute of commodity X rises the demand for X?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.
When price of commodity X rises the demand of commodity Y falls then commodities are?If a fall in price of commodity S raises demand for commodity T the two commodities are said to be complementary commodities.
When a price of a commodity falls the substitute of that commodity becomes?3. Substitution effect: When the price of a commodity falls it will be substituted for costlier things because thereby the consumer will gain. If the price of coffee falls it will be used by some people in place of other beverages to some extent.
When both the price of a substitute and price of the complement of commodity X rise?When the price of a substitute increases, the quantity demanded of commodity X will rise. c) When the price of a complement of commodity X increases, the quantity demanded will rise. Complements have a proportional demand based on their prices.
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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?
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