Solution Found!
If the price of a substitute good increases, which of the following will happen to the
Chapter 0, Problem 5(choose chapter or problem)
If the price of a substitute good increases, which of the following will happen to the price and the quantity sold in a market?
\(\begin{array}{ll} \quad \text { Price } & \text { Quantity sold } \\ \text { a. increase } & \text { increase } \\ \text { b. increase } & \text { decrease } \\ \text { c. decrease } & \text { increase } \\ \text { d. } \text { decrease } & \text { decrease } \\ \text { e. } \text { increase } & \text { no change } \end{array}\)
Questions & Answers
QUESTION:
If the price of a substitute good increases, which of the following will happen to the price and the quantity sold in a market?
\(\begin{array}{ll} \quad \text { Price } & \text { Quantity sold } \\ \text { a. increase } & \text { increase } \\ \text { b. increase } & \text { decrease } \\ \text { c. decrease } & \text { increase } \\ \text { d. } \text { decrease } & \text { decrease } \\ \text { e. } \text { increase } & \text { no change } \end{array}\)
ANSWER:Step 1 of 2
Demand:
Demand refers to the situation where the consumer or buyer can purchase a product or service. Demand for the commodity is inversely related to its price. When the price increases, the amount demanded, the product decreases, and vice-versa.