Advertisements
Advertisements
Question
Increase in price of substitute good leads to ______.
Options
Expansion in Demand
Increase in Demand
Decrease in Demand
Contraction in demand
MCQ
Fill in the Blanks
Advertisements
Solution
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.
shaalaa.com
Is there an error in this question or solution?
