English

Suppose that good A is a substitute of good B. How will an increase in the price of good B affect the demand curve of good A?

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Question

Suppose that good A is a substitute of good B. How will an increase in the price of good B affect the demand curve of good A?

Very Short Answer
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Solution

The demand curve for good A will shift to the right, as consumers switch from the now more expensive good B to good A.

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Chapter 3: Demand - OBJECTIVE QUESTIONS [Page 3.46]

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Sandeep Garg Introductory Microeconomics [English] Class 11
Chapter 3 Demand
OBJECTIVE QUESTIONS | Q 20. | Page 3.46
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