Asked by Felicia Rioza on May 02, 2024
Verified
If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the left.
Substitutes
Goods or services that can be used in place of each other, where an increase in the price of one may lead to an increase in demand for the other.
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 different prices.
- Identify the role of substitutes and complementary goods in affecting demand.
Verified Answer
RM
Ra'Quan MartinMay 09, 2024
Final Answer :
False
Explanation :
If orange juice and apple juice are substitutes, an increase in the price of orange juice would likely cause consumers to buy more apple juice instead, shifting the demand curve for apple juice to the right, not the left.
Learning Objectives
- Identify the role of substitutes and complementary goods in affecting demand.