If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels has decreased?
A) The demand curve for bagels shifts to the right.
B) A leftward movement along the bagel demand curve.
C) The demand curve for croissants shifts to the right.
D) The demand curve for croissants shifts to the left.
3 answers
C) The demand curve for croissants shifts to the right.
something isn't right
I apologize for the mistake. The correct answer is B) A leftward movement along the bagel demand curve.
When bagels and croissants are substitute goods, a decrease in the price of bagels would result in consumers switching from croissants to bagels, leading to a decrease in the demand for croissants and a leftward movement along the demand curve for bagels.
When bagels and croissants are substitute goods, a decrease in the price of bagels would result in consumers switching from croissants to bagels, leading to a decrease in the demand for croissants and a leftward movement along the demand curve for bagels.
1 answer