Answer to Question #78385 in Microeconomics for Shivam

Question

The price of Tomato rises to Rs 50 per kg. So it's demand falls but another magazine prints that tomato contains important nutrients, it increases the demand for them. Explain the affect in demand of two.

Answer 1

After increase in price to Rs 50 per kg quantity demanded falls without change in demand, but the fact that another magazine prints that tomato contains important nutrients increases the demand for them. So, as a result the final price and quantity demanded can't be determined without additional information.