When the price of a substitute of commodity $X$ falls, the demand for commodity $X$ ___.

rises

No worries! We‘ve got your back. Try BYJU‘S free classes today!

falls

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

remains unchanged

No worries! We‘ve got your back. Try BYJU‘S free classes today!

any of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B falls
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 $X$ .

Suggest Corrections

Similar questions

When the price of the substitute goods rise then demand for a given commodity ___

Join BYJU'S Learning Program