For consumers, chocolate chip cookies and doughnuts are substitutes. So, an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts.

Question

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When two goods are substitutes, an increase in the price of one leads to an increase in demand for the other, as consumers switch to the more affordable option.

For Consumers, Chocolate Chip Cookies and Doughnuts Are Substitutes