IDNLearn.com: Where questions are met with accurate and insightful answers. Get step-by-step guidance for all your technical questions from our knowledgeable community members.
Sagot :
The demand for a good increase when the price of a substitute in consumption decreases and also decreases when the price of a complement in consumption increases.
What is demand and supply?
- Supply and demand is an economic theory that describes how prices are set in a market in microeconomics.
- In a competitive market, it is hypothesized that all else being equal, the unit price for a specific good or other traded good, such as labor or liquid financial assets, will fluctuate until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.
- It is the theoretical cornerstone of contemporary economics.
Therefore, the demand for a good increases when the price of a substitute in consumption decreases and also decreases when the price of a complement in consumption increases.
Know more about microeconomics here:
https://brainly.com/question/8648375
#SPJ4
We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. Your questions deserve precise answers. Thank you for visiting IDNLearn.com, and see you again soon for more helpful information.
