Question
General Knowledge Question on Business Finance
When the price of a substitute of a commodity X falls, then the demand for X
A
Rises
B
Falls
C
Remains unchanged
D
First rises and then falls
Answer
Falls
Explanation
Solution
The correct option is (B): Falls
When the price of a substitute for a commodity X falls, consumers are likely to buy more of the substitute instead of commodity X, leading to a decrease in the demand for X.