Question

Increase in price of substitute good leads to ______.

विकल्प

• Expansion in Demand

• Increase in Demand

• Decrease in Demand

• Contraction in demand

Answer 1

Increase in price of substitute good leads to increase in Demand.

Explanation:

When a substitute becomes more expensive, consumers shift toward the given good, increasing its demand. This shifts the demand curve rightward rather than causing movement along it.