Demand theory is an economic principle relating to the relationship between consumer demand for goods and services and their prices in the market. In microeconomics, the law of demand is a fundamental principle that states that there is an inverse relationship between price and quantity demanded.

An increase in the price of a good may arise from an increase in the price of its substitute, ceteris paribus.’ Explain this statement using an example from the leisure or tourism sector.

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As we know that other things being equal there is an inverse relationship exist between the price of ... View the full answer