The supply of a good is inversly influenced with the change in price of other product which can explain as fallows.
Rise in price of other product :– When there is rise in the price of other product the production of these product become more profitable due to unchanged cost in comparison of the production of given produce. As a result the producer will produce more quantity of other product so the supply of given good will decrease.
Fall in the price of other product :– When there is fall in the price of other product the production of these product become less profitable due to unchanged cost in comparison of the production of given product. As a result producer will produce less quantity of other product so the factors of production shifted for the production of given good. It cause an increase in supply of given good.
Explain how changes in prices of other products influence the supply of a given product.
Answers
Sumit Singh
The supply of a good is inversly influenced with the change in price of other product
which can explain as fallows.