An increase in the price of good 2 will cause the demand curve for good 1 to shift out.

Name: An increase in the price of good 2 will cause the demand curve for good 1 to shift out.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The increase in price of good 2 will not directly impact the demand for good 1. The demand curve for good 1 will only shift out if there is a change in the factors affecting the demand for good 1 itself, such as changes in consumer preferences or income.

An Increase in the Price of Good 2 Will Cause