TABLE 4-2

-Refer to Table 4-2. Suppose the demand schedule for Good A changes from D₁ to D₂ because the price of a related good, Good B, increases. Based on this, what can we conclude?

Question

TABLE 4-2
 
-Refer to Table 4-2. Suppose the demand schedule for Good A changes from D₁ to D₂ because the price of a related good, Good B, increases. Based on this, what can we conclude?

Quizplus · Accepted Answer

When the price of Good B increases and the demand for Good A increases (shifts from D₁ to D₂), it suggests that consumers are turning to Good A as an alternative. This behavior indicates that Good B is likely a substitute for Good A, as consumers switch to Good A when Good B becomes more expensive.

TABLE 4-2 -Refer to Table 4-2. Suppose the Demand Schedule for Good