If the price for a product increases,the demand for a substitute product will
A) decrease.
B) increase.
C) stay the same.
D) become more elastic.
E) become more inelastic.

Question

Quizplus · Accepted Answer

When the price of a product increases, consumers tend to look for a substitute product that is cheaper, thus increasing the demand for the substitute product. This is because the substitute product becomes relatively cheaper in comparison to the original product, and consumers switch their preferences towards the substitute.

If the Price for a Product Increases,the Demand for a Substitute