Assume goods X and Y are substitutes.An increase in the price of X would cause the demand for Y to increase.

Name: Assume goods X and Y are substitutes.An increase in the price of X would cause the demand for Y to increase.
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Question

Quizplus · Accepted Answer

When the price of X increases, consumers are more likely to switch to a substitute good, in this case, Y. Therefore, an increase in the price of X causes an increase in the demand for Y.

Assume Goods X and Y Are Substitutes