With a fall in the price of a commodity-X demand for commodity-Y also falls. This best represents —

CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
With a fall in the price of a commodity-X demand for commodity-Y also falls. This best represents —
(A) An exception to the law of demand
(B) Universal application of the law of supply
(C) Relationship between two goods that are substitutes for each other
(D) A market economy where pricing decisions are difficult to make.

Answer & Explanation:

Correct Answer: Option (C)

Correct answer: (C) Relationship between two goods that are substitutes for each other.

Topics: Business Economics

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