If the Apple iPhone and the Samsung Galaxy are considered substitutes, then, other things equal, an increase in the price of the iPhone will
A) decrease the demand for the iPhone.
B) increase the demand for the Galaxy.
C) increase the quantity demanded for the Galaxy.
D) increase the quantity demanded for the iPhone.

Question

Quizplus · Accepted Answer

When two products are considered substitutes, an increase in the price of one product leads to an increase in demand for the other product. In this case, an increase in the price of iPhone will lead to an increase in the demand for the Samsung Galaxy. Therefore, the correct answer is B.

If the Apple IPhone and the Samsung Galaxy Are Considered