In the following question you are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1)the demand (D)for,or supply (S)of,X; (2)the equilibrium price (P)of X;and (3)the equilibrium quantity (Q)of X. Refer to the given information.An increase in the price of a product that is a close substitute for X will:

Question

Quizplus · Accepted Answer

An increase in the price of a close substitute for product X makes X more attractive to consumers, leading to an increase in demand (D) for X. This higher demand pushes the equilibrium price (P) of X up as consumers are willing to pay more for it. Consequently, the equilibrium quantity (Q) sold also increases as the market adjusts to the higher demand.

In the Following Question You Are Asked to Determine,other Things