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

Question

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

Quizplus · Accepted Answer

When the price of Good X increases, producers are more inclined to produce Good X due to its higher profitability, leading to a movement along the supply curve for Good X as they adjust the quantity supplied. For Good Y, since it is a substitute in production, producers might shift resources away from producing Good Y to produce more of Good X, causing a shift in the supply curve for Good Y as the entire relationship between price and quantity supplied changes for Good Y.

If Goods X and Y Are Substitutes in Production, If