Question

What will be the reaction of consumers in a market if there is a fall in the price of the substitute commodity X?

Accepted Answer

Demand for commodity X will decrease

Answer

Price of commodity X will increase

Answer

Demand for the substitute of commodity X will decrease

Answer

Supply of both commodity X and its substitute will increase.

What will be the reaction of consumers in a market if there is a fall in the price of the substitute commodity X?