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ahrayia [7]
3 years ago
9

2. If the price of a substitute to good X increases, then

History
1 answer:
cricket20 [7]3 years ago
8 0

Answer:

the demand for good X will increase.

Explanation:

The demand for any good X can be changed due to either an increase or decrease in the prices of other related goods in the market. These related goods are either substitute good or compliment goods.

Substitute for the good X are Good Y that can be seen to have satisfied some of the needs, if not all, as good X. So if the good we are looking at as X is Margarine, then Good Y is butter.  

So when the price of Good Y rises, the demand for good X would certainly increase and the demand curve for good X would shift to the right.  

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