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CBSE-class-12-Economics-2019-->View question

Good X and Good Y are complementary goods .

 If price of Good X increases, discuss briefly its likely impact on the demand for Good Y. 


Asked On2019-07-04 15:34:35 by:Jaynil-Gaglani

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If X and Y are complementary goods. Then if price of good X is increased, people will buy less of good Y. Because, increase in price of X is associated with less demand for it, which in turns decreases the demand for good Y. Say if price of printer goes up, people will use less printer and hence less papers. So, the demand for papers will decrease. 
Answerd on:2021-12-28 Answerd By:Akshay-Telmasare

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If the price of Good X increases, the demand for Good Y will increase. If the price of the X (substitute good) rises, then demand for X will fall. As X and Y are substitute goods, so the demand for Y will increase since it is a cheaper good now. This shifts the initial demand curve for Y parallelly rightwards.


Answerd on:2022-01-29 Answerd By:Muskan-Kumari

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