+91-8076753736 support@wiredfaculty.com

Sponsor Area

Theory Of Consumer Behaviour

Question

Wired Faculty App

How does change in price of related good (substitute and complementary) affect the demand of commodity?

Solution

In case of substitute good (like coffee and tea) demand for a good (say tea) rises if price of its substitute (say coffee) rises and demand falls if price of its substitute falls. In case of complementary good (like car and petrol), if price of one good (like pertol) falls demand for the other (like car) rises and if price of one good rises, demand for the other falls.

Some More Questions From Theory Of Consumer Behaviour Chapter

When does a consumer attain equilibrium according to indifference curve approach?

Give meaning of demand.

Name two determinants of demand.

List the factors that cause changes in demand.

What is law of demand?

What is demand schedule?

Why does demand curve slope downwards?

Differentiate between substitute and complementary goods.

What is meant by one good being substitute of other?

What is meant by one good being complementary to another.

Mock Test Series

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation