Figure 2.3

-In Figure 2.3, the initial demand curve is D₁ and the supply curve is S₁. If the price of a substitute good increases, what is the most likely result?

Name: Figure 2.3 -In Figure 2.3, the initial demand curve is D 1 and the supply curve is S 1 . If the price of a substitute good increases, what is the most likely result?
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Question

Figure 2.3 -In Figure 2.3, the initial demand curve is D₁ and the supply curve is S₁. If the price of a substitute good increases, what is the most likely result?

Quizplus · Accepted Answer

When the price of a substitute good increases, the demand for the original good typically increases, causing the demand curve to shift to the right, from D1 to D2.

Figure 2.3 -In Figure 2.3, the Initial Demand Curve Is D1 and Curve

Figure 2.3 -In Figure 2.3, the Initial Demand Curve Is D₁ and Curve