If Goods X and Y are substitutes in production, if the price of Good X decreases, this will cause a movement _________the supply curve for Good X and a _________ shift in the supply curve for Good Y.

Question

If Goods X and Y are substitutes in production, if the price of Good X decreases, this will cause a movement  _________the supply curve for Good X and a _________ shift in the supply curve for Good Y.

Quizplus · Accepted Answer

If goods X and Y are substitutes in production, a decrease in the price of Good X will make it more attractive to producers and they will shift production towards Good X, causing a rightward shift in the supply curve for Good X. Since X and Y are substitutes, the increase in production of Good X will reduce the production of Good Y, causing a leftward shift in the supply curve for Good Y. Therefore, the correct answer is C, down for Good X and rightward for Good Y.

If Goods X and Y Are Substitutes in Production, If