Given a downsloping demand curve and an upsloping supply curve for a product,an increase in the price of a substitute good will:

Name: Given a downsloping demand curve and an upsloping supply curve for a product,an increase in the price of a substitute good will:
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Question

Quizplus · Accepted Answer

An increase in the price of a substitute good makes the product more attractive, increasing demand. This shifts the demand curve to the right, leading to a higher equilibrium price and quantity.

Given a Downsloping Demand Curve and an Upsloping Supply Curve