Use the following to answer question:
-(Figure: Demand for Coconuts)Use Figure: Demand for Coconuts.If fish is a substitute good for coconuts and the price of fish increases,it will be represented in the figure as a:
A)shift from D1 to D2
B)movement from point A to point B
C)shift from D1 to D3
D)movement from point B to point E

Question

Use the following to answer question: 
-(Figure: Demand for Coconuts)Use Figure: Demand for Coconuts.If fish is a substitute good for coconuts and the price of fish increases,it will be represented in the figure as a:
A)shift from D1 to D2 
B)movement from point A to point B 
C)shift from D1 to D3 
D)movement from point B to point E

Quizplus · Accepted Answer

When the price of a substitute good (like fish) increases, consumers will tend to buy more of the good in question (coconuts in this case), leading to an increase in its demand. This is represented by a rightward shift in the demand curve, from D1 to D2.

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