If the price of a substitute increases, the demand curve for a good:
A)does not move because the goods are independent.
B)does not move because the price and quantity adjust along the demand curve.
C)shifts down and to the left.
D)shifts up and to the right.

Question

Quizplus · Accepted Answer

When the price of a substitute increases, consumers are more likely to switch their demand to the good in question, thus increasing its demand. This is represented by a shift of the demand curve up and to the right.

If the Price of a Substitute Increases, the Demand Curve