If products C and D are close substitutes, an increase in the price of C will:
tend to cause the price of D to fall.
shift the demand curve of C to the left and the demand curve of D to the right.
O shift the demand curve of D to the right.
Oshift the demand curves of both products to the right.

Question

07-06-2024
Business

Answered

Discover a wealth of knowledge at Westonci.ca, where experts provide answers to your most pressing questions. Get quick and reliable solutions to your questions from knowledgeable professionals on our comprehensive Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

If products C and D are close substitutes, an increase in the price of C will:
tend to cause the price of D to fall.
shift the demand curve of C to the left and the demand curve of D to the right.
O shift the demand curve of D to the right.
Oshift the demand curves of both products to the right.

Sagot :

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.

Marco has a jug with 37 1/2 ounces of juice.He wants to use some small cups to pass out samples of the juice.Each cup can hold 2 1/2 ounces of juice.How many cu

A supermarket has 64 cartons of 40 peaches each. The peaches are packed into bags of 8 each.How many bags of peaches are there ?

the math club is doing a fundraiser to raise money to attend a math competition. The club was told by their advisor to raise $2000, but they decided to raise $4

Hana is putting the fruit she brought into bowls. She bought 8 melons,12 pears,and 24 apples. She puts the same number of pieces of fruit in each bowl. How many

One of the factors that contributed to the downfall of both the Inca and the Aztec empires was their a. lack of a natural immunity to diseases that the Spanish

Hana is putting the fruit she brought into bowls. She bought 8 melons,12 pears,and 24 apples. She puts the same number of pieces of fruit in each bowl. How many

What problems does Dhaka's location below sea level on the delta of the Ganges River pose for its residents?

A temporary committee consisting of members of both houses with the responsibility of creating agreement on different versions of the same bill is referred to a

which of the following would be violated if the united states were to annex cuba following a conflict between the two countries?

Which statement below is true? a. Russia has abundant natural resources and therefore does not need to carefully manage their use. c. Russia has limited natural

GinnyAnswer GinnyAnswer · Answer 1 · 2024-06-07T22:52:09-04:00

Let's consider the relationship between products C and D:

### Substitutes Explained:
- Substitute Goods: When two goods are substitutes, an increase in the price of one good generally leads to an increase in the demand for the other good.

### Scenario Analysis:
- Increase in the Price of Product C:
- When the price of product C increases, consumers will find product C relatively more expensive.
- As a result, some consumers will switch from product C to its substitute, product D, because product D becomes relatively cheaper compared to product C.

### Impact on Demand Curves:
- Product C:
- Since product C has become more expensive, the quantity demanded for product C will decrease.
- This can be represented by a leftward shift in the demand curve for product C.
- Product D:
- With consumers switching from product C to product D, the demand for product D will increase.
- This increased demand for product D is represented by a rightward shift in the demand curve for product D.

### Final Conclusion:
- Correct Answer: An increase in the price of product C will shift the demand curve of product D to the right.

Therefore, the correct choice that best describes the effect of an increase in the price of product C, given that products C and D are close substitutes, is:

O shift the demand curve of D to the right.

Sagot :

Other Questions