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.

P1 = 4, Q1 = 25 P2 = 5, Q2 = 20 ΔP = P2 - P1 = 5 - 4 = 1 ΔQ = Q2 - Q1 = 20 - 25 =...

X and Y goods are substitute goods.

Inverse relation exists between price of a good and demand of its complementary good.

X and Y are complementary goods.

It is called contraction of demand.

Individuals demand refers to the quantity of a good, single consumer is willing to buy, at a price during a period of time while market demand refers to the quantity...

(a) Related goods are of two types, Substitute goods and Complementary goods. (i) In case of substitute goods: When price of one commodity falls, demand for other commodity declines, e.g.,...

exD = -(2); ed = -(3) The coefficient of price elasticity of demand is always negative due to the law of demand which states that there is an inverse relation...

Given Q= 27, P = 10, P1 = 9, Q1 = 30                  Total Expenditure Method P Q Total Expenditure (P x Q) 10 27 270 9 30 270 Since, with the fall in...

When price of foreign currency rises it makes imports costlier. This leads to fall in demand for imports. At a result demand for foreign exchange falls.