If the Apple Watch and the Samsung Gear S2 are considered substitutes, then, other things equal, an increase in the price of the Apple Watch will
A)decrease the demand for the Apple Watch.
B)increase the demand for the Gear S2.
C)increase the quantity demanded for the Gear S2.
D)increase the quantity demanded for the Apple Watch.

Question

Quizplus · Accepted Answer

When two products are considered substitutes, an increase in the price of one product will lead to an increase in the demand for the other product. In this case, an increase in the price of the Apple Watch will lead consumers to consider the Samsung Gear S2 as a relatively cheaper alternative, thus increasing the demand for it.

If the Apple Watch and the Samsung Gear S2 Are