Suppose that the equilibrium price of blackberries is $3 per pound, and the price of black raspberries (a substitute for blackberries) increases. What happens in the market for blackberries?
A) An excess supply of blackberries at $3 per pound leads to an increase in quantity demanded and a decrease in quantity supplied.
B) The demand curve for blackberries shifts to the right, reflecting an increase in both the equilibrium price and the quantity.
C) An excess demand of blackberries at $3 per pound results in a new equilibrium price that is less than $3 per pound.
D) The demand curve for blackberries decreases, reducing the equilibrium price and raising the equilibrium quantity.

Question

Quizplus · Accepted Answer

When the price of a substitute (black raspberries) increases, consumers will demand more of the substitute good (blackberries), shifting the demand curve for blackberries to the right, leading to a higher equilibrium price and quantity.

Suppose That the Equilibrium Price of Blackberries Is $3 Per