When the price of a substitute of X commodity 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 X commodity falls, the demand for X will rise. This is because consumers will now be able to purchase the substitute at a lower price, which will make it more attractive to them. As a result, they will demand more of X.

Here is a brief explanation of each option:

  • A. Rises. When the price of a substitute of X commodity falls, the demand for X will rise. This is because consumers will now be able to purchase the substitute at a lower price, which will make it more attractive to them. As a result, they will demand more of X.
  • B. Falls. This is not the correct answer because the demand for X will rise when the price of a substitute of X commodity falls.
  • C. Remains unchanged. This is also not the correct answer because the demand for X will rise when the price of a substitute of X commodity falls.
  • D. Any of the above. This is not the correct answer because the demand for X will rise when the price of a substitute of X commodity falls.
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