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garik1379 [7]
3 years ago
12

Match the following: 1. Complement What happens to the demand for ice cream cones, if the price of ice cream increases? 2. Subst

itute What happens to the demand for butter, if the price of margarine increases? 3. Demand Increases Ice cream and ice cream cones 4. Demand Decreases Butter and margarine
Social Studies
1 answer:
prohojiy [21]3 years ago
5 0

1. Demand for ice cream cones will decrease if the price of ice cream increase.

2. Demand for butter will increase if the price of margarine increases.

<u>Explanation:</u>

<u>Price and demand are two important controlling factors of market policy. </u>

  • If the price of a very popular product suddenly increase it will automatically affect the demand of that product in a drastic manner. Like ice cream is a very high demanding product during summer season.
  • But its demand will decrease from the normal level if its price get high suddenly which will effect the supply of that product eventually.
  • Besides price of substitute product also affect the demand of its contemporary product. Like, increasing price of butter will affect the demand of margarine in market.
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