Figure 4.4
-Figure 4.4 illustrates the demand for guitars.Assume that guitars and banjos are substitutes.A decrease in the price of banjos would bring about a movement from

Question

Quizplus · Accepted Answer

When the price of banjos (a substitute for guitars) decreases, consumers are likely to buy more banjos instead of guitars, leading to a decrease in the demand for guitars. This is represented by a shift from a higher demand curve (D₁) to a lower demand curve (D₀).

Figure 4.4 -Figure 4.4 Illustrates the Demand for Guitars.Assume That Guitars and Guitars