Asked by Santiago alzate on May 28, 2024
Verified
An increase in the price of a substitute shifts the demand curve to the _______
A) right
B) left
C) it does not change the demand curve
D) none of the above
Substitute
A product or service that can be used in place of another to satisfy the same want or need.
Demand Curve
A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at that price.
- Discern the theories of complement and substitute commodities and their repercussion on demand dynamics.
Verified Answer
HL
Helio LeyvaJun 01, 2024
Final Answer :
A
Explanation :
When the price of a substitute for a good increases, consumers are likely to switch their demand to the good in question, thus shifting its demand curve to the right.
Learning Objectives
- Discern the theories of complement and substitute commodities and their repercussion on demand dynamics.