Because new plastic and recycled plastic are substitutes, as the price of newly produced plastic decreases,
A)the demand curve for recycled plastic shifts to the left.
B)the demand curve for recycled plastic shifts to the right.
C)there is a movement up along the demand curve for recycled plastic.
D)there is a movement down along the demand curve for recycled plastic.

Question

Quizplus · Accepted Answer

As the price of newly produced plastic decreases, consumers are more likely to choose newly produced plastic over recycled plastic since it is cheaper. This reduces the demand for recycled plastic, causing the demand curve to shift to the left.

Because New Plastic and Recycled Plastic Are Substitutes, as the Price