[Note: The distance between cities in California (US) distance chart below is straight line distance (may be called as flying or air distance) between the two locations in California (US) calculated based on their latitudes and longitudes. This distance may be very much different from the actual travel distance.]
Price of Related Goods: Demand for the given commodity is also affected by change in prices of the related goods. Related goods are of two types: (i) Substitute Goods: Substitute goods are those goods which can be used in place of one another for satisfaction of a particular want, like tea and coffee.
5. If the expected future price of the product rises (falls), the supply curve in the present period shifts leftward (rightward). A change in supply also affects the price and quantity of the product. 1. An increase in supply (a shift rightward of the supply curve) causes the price to fall and the quantity to increase. 2. A decrease in supply (a shift leftward in the supply curve) causes the price to rise and the quantity to decrease