Learning Contents: ·              Effect of Increase in price on the demand of substitute goods. ·              Effect of Decrease in price on the demand of substitute goods.   Introduction The previous post explored some factors other than the price that cause a change in the demand for a commodity or demand curve to shift. Related goods are of two types namely substitute and complementary goods. The price of the related goods may either increase or decrease causing the demand curve to shift forward or backward respectively. This effect of change in the price of related goods on the demand for a commodity is called the cross-price effect. In this post, we will only understand how a change in the price of a substitute good changes the demand for other good in the following situations: a.       Increase in the price of substitute good b.       Decrease in the price of substitute good Substitutes Substitut