The Demand Function of X is given by
QD = a -bP
Now the prices of substitute goods rise by ₹'c' per unit.
What would be the change in the Demand Function and express the new Demand Function????
The standard demand and supply equations are based on the relationship of quantity demanded and quantity supplied respectively with the price of the commodity only while assuming that other things remain the same.
The impact of factors other than price is not depicted by the demand equation and supply equation.
The impact of factors other than price is not depicted by the demand equation and supply equation.