Use the information below to answer questions.
When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.
The two commodities can be classified as?
Substitutes
durable and non-durable
intermediate and final
complements
Explanation
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Discussions (8)
the answer can't be substitute. it should be complementary.please effect. Thanks
The answer is substitutes ooo
Explanation:
When the price of Commodity X increased from N25 to N50, the demand for Commodity Y fell from 50 units to 20 units.
This indicates that Commodity X and Commodity Y are substitute goods.
In economics, substitute goods are those that can replace each other. When the price of one increases, the demand for the other usually increases. However, in this case, the demand for Commodity Y decreased, which suggests that they are imperfect substitutes where consumers reduced their purchase of Y because they still preferred X to some extent despite its price increase
A is correct, x is lower y high consumer will go 4 x since is cheaper instead of y, put me true if am wrong
The answer is wrong because when the price of commodity x increases. Quantity demanded should'nt have decrease for commodity Y.correct answer is A. let take for instance 2 complimentary goods like car and petrol.when price of car increases , demand of car will fall and which will bring about a corresponding decrease in demand for Petrol.but tho substitute goods like gala and super bite.if the price of gala should increase . Consumer will buy more of super bite and not less.
