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If people demand more of product A when the price of B falls then A and B are?
Wiki User
∙ 15y ago
Compliments. Think movie tickets and popcorn. If movie tickets are less expensive, more people will attend movies, and the demand for popcorn will rise. Another relationship is substitute goods. If the price of Oranges rises, the demand for apples will increase.
Wiki User
∙ 15y ago
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What is a demand for a product?
A demand for a product is when a customer expresses a desire or willingness to purchase a product. It is the amount of a product that customers are willing to buy at a specific price. Generally the demand for a product is determined by the price of the product the customers income the availability of a substitute and the customers preferences. When the price rises demand falls and when the price decreases demand increases.Factors that affect the demand for a product include: Price of the product Customers income Availability of a substitute Customers preferencesIf the price of the product rises then the demand for the product falls and vice versa. This is due to the fact that customers are willing to pay a certain price for a product and when the price increases customers will be less likely to purchase the product.
What will happen to demand for a commodity if the price of its complementary falls?
Complement goods are those goods which uses collectively or side by side e.g petrol and cars. If the demand of one good changes then demand of other good move in the same direction. If the price of product complementary falls then the demand of complementary product increases according to the demand law which in turn increase the demand of product. Suppose the prices of petrol falls which will increase the demand of petrol which in turn in increase the demand of cars.
Explain how a change in price affects the demand for a product substitutes?
The change in price can affect the demand for that product. If the price increases people will look for cheaper substitutes.
The law of Demand?
The law of demand states that as price of an object goes up, the quantity goes down. However, as the price falls then quantity rises. IF price falls, demand increases and if price rises, demand decreases.
What is the validity of law and demand?
This is how much the consumer will want the product at a certain price. The higher you price the item, the fewer people who will demand it.
What is a demand for a product?
A demand for a product is when a customer expresses a desire or willingness to purchase a product. It is the amount of a product that customers are willing to buy at a specific price. Generally the demand for a product is determined by the price of the product the customers income the availability of a substitute and the customers preferences. When the price rises demand falls and when the price decreases demand increases.Factors that affect the demand for a product include: Price of the product Customers income Availability of a substitute Customers preferencesIf the price of the product rises then the demand for the product falls and vice versa. This is due to the fact that customers are willing to pay a certain price for a product and when the price increases customers will be less likely to purchase the product.
What will happen to demand for a commodity if the price of its complementary falls?
Complement goods are those goods which uses collectively or side by side e.g petrol and cars. If the demand of one good changes then demand of other good move in the same direction. If the price of product complementary falls then the demand of complementary product increases according to the demand law which in turn increase the demand of product. Suppose the prices of petrol falls which will increase the demand of petrol which in turn in increase the demand of cars.
Explain how a change in price affects the demand for a product substitutes?
The change in price can affect the demand for that product. If the price increases people will look for cheaper substitutes.
The law of Demand?
The law of demand states that as price of an object goes up, the quantity goes down. However, as the price falls then quantity rises. IF price falls, demand increases and if price rises, demand decreases.
What is the validity of law and demand?
This is how much the consumer will want the product at a certain price. The higher you price the item, the fewer people who will demand it.
What is the validity law of demand?
This is how much the consumer will want the product at a certain price. The higher you price the item, the fewer people who will demand it.
What happens to the total expenditures for a product with elastic demand when is price goes up?
When the price falls and the demand is elastic ie. ed >1 the total expenditure increases according to the total outlay method.
Change in market price?
Changes in the market price is determined by demand of a product. If consumers demand the product, then the price will increase.
Conclusion of price elasticity of demand?
The conclusion of the price of elasticity of demand is the effect of price change based on the revenue it receives. It is based off the demand of the product and the price of the product.
Total expenditures are determined by what?
Dividing the change in demand for the product by its change in price. e=(change in demand)%/(change in price)%
What does it mean when the price elasticity of demand is -3?
When price increases by 1%, demand falls by 3%.
What is the difference elastic and inelastic demand?
Difference is that inelastic demand people need to have that item no matter what the cost. An example would be insulin for diabetic people. Elastic demand is when someone doesn't need to buy a product if the price changes. Example is ramen noodles. If they cost $100 per packet people wouldn't buy them.
