When the demand for a commodity depends on the effect of a change in the price of a related commodity, it is called

Income effect

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Joint effect

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Cross price effect

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Price effect

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Solution

The correct option is C
Cross price effect

When the demand for a commodity depends on the effect of a change in price of a related commodity, it is called cross price effect. Here the goods are said to be related and the demand for one changes in response to change in price of the other.

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Substitution effect takes place when price of the commodity becomes:

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