Factors influencing supply curve - prices of related goods, Managerial Economics

Prices of other related goods

i)           Substitutes:  If X and Y are substitutes, then if the price X increases, the quantity demanded of X falls.  This will lead to increased demand for Y, and this way eventually lead to increased supply of Y.

ii)         Complements:  If two commodities, say A and B are used jointly, then an increase in the price of A shall lead to a fall in the demand for A, which will cause the demand for B to fall too.

Posted Date: 11/27/2012 5:59:38 AM | Location : United States







Related Discussions:- Factors influencing supply curve - prices of related goods, Assignment Help, Ask Question on Factors influencing supply curve - prices of related goods, Get Answer, Expert's Help, Factors influencing supply curve - prices of related goods Discussions

Write discussion on Factors influencing supply curve - prices of related goods
Your posts are moderated
Related Questions
Increase in demand SS is the supply curve and D 1 D 1 the initial demand curve shifts to the right, to position D 2 D 2 .  P 1 is the initial equilibrium price and q 1

distinguish between industry demand and firm company demand

Disadvantages of Perfect Competition There is a great deal of duplication of production and distribution facilities amongst firms and consequent waste. Economies of sc

manual problems solution of demand theory

External Debt Problem External debt refers to debt owing by one country to another.  External debt is a more serious problem than internal debt because the payment of interest

find out the characterstics of national stock exchange

real GDP is increasingly criticized for its alleged failure to adequately measure the standard of living. To what extent do you think this criticism is valid?

Price Elasticity of Demand Is the responsiveness of the quantity demanded to changes in price; its co-efficient is Pe d    =  Proportionate change in quantity demanded