Given a downsloping demand curve and an upsloping supply curve for a product, an increase in the price of a substitute good (from the buyer's perspective) will

Question

Quizplus · Accepted Answer

An increase in the price of a substitute good makes the original product more attractive to buyers, leading to an increase in demand. This shifts the demand curve to the right, resulting in a higher equilibrium price and quantity.

Given a Downsloping Demand Curve and an Upsloping Supply Curve