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From the options given below, identify the incorrect cause of increase in demand.
  • a)
    Increase in expenditure on advertisements to make them successful.
  • b)
    Increase in the price of substitute goods.
  • c)
    Increase in the price of complimentary goods.
  • d)
    Increase in the number and income of consumers.
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
From the options given below, identify the incorrect cause of increase...
  • Increase in the price of complimentary goods, is not one of the causes of increase in demand.
  • It is rather one of the causes of decrease in demand.
  • Let us take an example to understand this: we all know that vehicles run on fuel (diesel or petrol). It is very common to see that when the prices of fuel rise, the demand of two-wheelers and four-wheelers gets reduced. This is because fuel is a complimentary good for vehicles.
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From the options given below, identify the incorrect cause of increase in demand.a)Increase in expenditure on advertisements to make them successful.b)Increase in the price of substitute goods.c)Increase in the price of complimentary goods.d)Increase in the number and income of consumers.Correct answer is option 'C'. Can you explain this answer?
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