When the price of a substitute of commodity X falls, the demand for X-

rises
falls
remains unchanged
any of the above

The correct answer is A. rises.

When the price of a substitute of commodity X falls, the demand for X will rise. This is because consumers will now be able to get the same satisfaction from consuming less of X and more of the substitute. This is known as the substitution effect.

In addition, the fall in the price of the substitute will make X relatively more expensive. This is known as the income effect. The income effect will also lead to an increase in the demand for X.

Therefore, the demand for X will rise when the price of a substitute of commodity X falls.

Option B is incorrect because the demand for X will rise, not fall.

Option C is incorrect because the demand for X will change, not remain unchanged.

Option D is incorrect because only option A is correct.

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