Given a fixed supply of lamb chops, a reduction in the price of pork chops (close substitutes)will tend to:
A)shift the demand curve for lamb chops to the right.
B)shift the demand curve for pork chops to the right.
C)shift the demand curve for pork chops to the left.
D)raise the price of lamb chops.
E)lower the price of lamb chops.

Question

Quizplus · Accepted Answer

A reduction in the price of pork chops, which are substitutes for lamb chops, will likely lead to a decrease in the demand for lamb chops, thus lowering their price.

Given a Fixed Supply of Lamb Chops, a Reduction in the Price