If A and B are substitutes and the price of A rises,we will observe
A)an increase in the equilibrium price and the equilibrium quantity of B.
B)a decrease in the equilibrium price and the equilibrium quantity of B.
C)an increase in the equilibrium price but a decrease in the equilibrium quantity of B.
D)a decrease in equilibrium price but an increase in the equilibrium quantity of B.
E)a decrease in the demand for A.

Question

Quizplus · Accepted Answer

When the price of a substitute good (A) rises, consumers will shift their demand to the other substitute (B), leading to an increase in both the equilibrium price and quantity of B as the market adjusts to the new demand.

If a and B Are Substitutes and the Price of a Rises,we