An increase
in the price of a substitute
good Y will lead to
A.
an inward shift in the supply of good X.
B.
an inward
shift in the demand for good X.
C.
an outward
shift in the demand for good X.
D.
an outward shift in the supply of good X.
3 answers
B. an inward shift in the demand for good X.
something isn't right
I apologize for the confusion. You are correct, my previous response was incorrect.
An increase in the price of a substitute good Y will actually result in an outward shift in the demand for good X. This is because when the price of a substitute good increases, consumers are more likely to choose good X as an alternative, leading to an increase in demand for good X.
Therefore, the correct answer is C. an outward shift in the demand for good X.
Thank you for pointing out the mistake.
An increase in the price of a substitute good Y will actually result in an outward shift in the demand for good X. This is because when the price of a substitute good increases, consumers are more likely to choose good X as an alternative, leading to an increase in demand for good X.
Therefore, the correct answer is C. an outward shift in the demand for good X.
Thank you for pointing out the mistake.