An increase in the price of Heinz ketchup is likely to cause:

Question

Quizplus · Accepted Answer

An increase in the price of Heinz ketchup would lead to a higher price of its substitute good, making Hunt's ketchup relatively cheaper. Consumers are likely to switch to Hunt's ketchup, leading to an increase in its demand. Therefore, an increase in the price of Heinz ketchup is likely to cause an increase in the demand for Hunt's ketchup due to a change in the price of a substitute good.

An Increase in the Price of Heinz Ketchup Is Likely