If two commodities are unrelated, a change in the price of one will____________
ECONOMICS
JAMB 2019
If two commodities are unrelated, a change in the price of one will____________
- A. have effect on the quantity demanded of the other
- B. have no effect on the quantity demanded of the other
- C. increase the quantity demanded on the other
- D. decrease the quantity demanded on the other
Correct Answer: B. have no effect on the quantity demanded of the other
Explanation
The two goods are Independent goods. Therefore, a change in the price of one will have no effect on the other. e.g. refrigerator and bicycle. A change in the price of refrigerator will have no effect on bicycle since they are not related.
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *