Assuming Coors and Budweiser are substitutes,an increase in the price of Coors is likely to cause

Question

Quizplus · Accepted Answer

Assuming Coors and Budweiser are substitutes, an increase in the price of Coors will make Budweiser relatively cheaper. As a result, consumers are more likely to substitute Coors for Budweiser, leading to an increase in the demand for Budweiser. Therefore, the correct answer is (C) an increase in the demand for Budweiser.

Assuming Coors and Budweiser Are Substitutes,an Increase in the Price