Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
decrease
B
increase
C
remain unchanged
D
become elastic
Understanding the Answer
Let's break down why this is correct
Answer
When the price of a substitute good increases, the demand for the original good tends to rise. This happens because people look for alternatives when prices go up. For example, if the price of butter increases, many people might start buying more margarine instead, which is a substitute for butter. As more people choose margarine, the demand for it goes up because it's seen as a cheaper option. Therefore, a change in the price of a substitute can directly affect how much of the original good people want to buy.
Detailed Explanation
When the price of a substitute goes up, people look for cheaper options. Other options are incorrect because Some might think that higher prices lead to less demand; It's a common mistake to think demand stays the same.
Key Concepts
Demand
Substitute Goods
Market Equilibrium
Topic
Understanding Demand and Supply
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.