Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / What are the effects of a change in the price of related goods, on the demand curve of other products?

What are the effects of a change in the price of related goods, on the demand curve of other products?

Economics

What are the effects of a change in the price of related goods, on the demand curve of other products?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The change in price of related goods affects the demand curve of other products in positive as well as negative manner. For example-,

  • As the price of tea leaves increases, the demand for it decreases. It results in a decrease in demand for sugar also and hence the demand curve for sugar shifts leftwards.
  • As the price for tea leaves increases, the demand for it decreases. It results in an increase in demand for coffee and hence the demand curve for coffee shifts to the right.