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.
Explanation:
Price and demand are two important controlling factors of market policy.
- 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.
