If X and Y are substitute goods,then an increase in the price of Y,other things constant,

Question

Quizplus · Accepted Answer

If X and Y are substitute goods, an increase in the price of Y will make the consumers shift toward X for its lower price, resulting in an increase in demand for X. At the same time, the quantity demanded of Y decreases due to its higher price, resulting in a decrease in the quantity of Y demanded. Therefore, option B is the correct answer.

If X and Y Are Substitute Goods,then an Increase in the Price