-If two goods can be made with essentially the same inputs, which one of the collection of supply and demand diagrams above shows the result of a decrease in the price of one on the market for the other.

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Figure 3 illustrates a decrease in demand for the other good when the price of one good decreases. This is because the two goods are substitutes, so a decrease in the price of one leads to consumers switching to the cheaper option, reducing demand for the alternative.

-If Two Goods Can Be Made with Essentially the Same