The market-clearing curve for substitutes is
A) Horizontal
B) Downward sloping
C) Vertical
D) Upward sloping

Name: The market-clearing curve for substitutes is A) Horizontal B) Downward sloping C) Vertical D) Upward sloping
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

The market-clearing curve for substitutes is upward sloping because as the price of one substitute increases, the demand for the other substitute increases, leading to a higher equilibrium price and quantity for the substitute.

The Market-Clearing Curve for Substitutes Is