If oranges and grapefruit are close substitutes, an increase in the price of oranges will shift the demand curve of
A)both products to the right.
B)both products to the left.
C)grapefruit to the right.
D)oranges to the left.

Question

Quizplus · Accepted Answer

When the price of oranges increases, consumers will likely switch to grapefruit as a substitute, increasing the demand for grapefruit. This is represented by a rightward shift in the demand curve for grapefruit.

If Oranges and Grapefruit Are Close Substitutes, an Increase in the Price