You are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1)the demand (D)for,or supply (S)of,X, (2)the equilibrium price (P)of X and (3)the equilibrium quantity (Q)of X.
-Refer to the above.An increase in the price of a product which is a close substitute for X will:

Question

Quizplus · Accepted Answer

An increase in the price of a close substitute for X will lead to an increase in the demand for X, as consumers switch to the relatively cheaper product X. This increased demand will result in a higher equilibrium price and quantity for product X.

You Are Asked to Determine,other Things Equal,the Effects of a Given