Ask Question
BusinessBusiness
17 July, 16:36

Good X and good Y are substitutes. If the price of good Y increases, then the

A. quantity demanded of good X will increase

B. demand for good X will increase

C. demand for good X will decrease

D. quantity demanded of good X will decrease

+1
Answers (1)
  1. 17 July, 17:02
    0
    The correct answer is B. demand for good X will increase.

    Explanation:

    Two goods, X and Y, are said to be substitutes if they can be used to serve the same purpose. Thus, if good X is a substitute to good Y, then X can be used in place of Y and Y can be used in place of X.

    For substitute goods, the cross-price elasticity of demand is positive. This means that if the price of one good rises, the demand for the substitute good increases.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Good X and good Y are substitutes. If the price of good Y increases, then the A. quantity demanded of good X will increase B. demand for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Rachel's Designs has 1,600 shares of 6%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2019 or 2020.
Answers (1)
Exercise 3-24 Recording cost of completed goods LO P4 Prepare journal entries to record the following production activities. Transferred completed goods from the Assembly department to finished goods inventory. The goods cost $135,600.
Answers (1)
Even sole proprietors should have at least how many computers?
Answers (2)
Compute payroll An employee earns $28 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week. Assume that the FICA tax rate is 7.
Answers (1)
If the price of a substitute increases, which of the following is most likely to happen in the market for the product under consideration in the short run? a. Supply will increase. b. Firms will leave the market. c.
Answers (1)
New Questions in Business
If an employer agrees to give you constructive criticism of your interview performance, you need to listen carefully and take notes. true or false
Answers (1)
If Whole Foods Market leaders were to engage in a SWOT analysis, they might study which of the following factors as part of the organization's external environment? a. Demographic and population changes within society b. The organizational culture c.
Answers (1)
How many fewer shirts are sold at the new demand level for any given price?
Answers (1)
brazil could produce coffee and rice. however, because of the climate and land of brazil, coffee is much cheaper and faster to produce.
Answers (2)
A $100 coat marked down from $150 can seem like a better deal than the same coat priced regularly at $100. this best illustrates the importance of
Answers (1)
Home » Business » Good X and good Y are substitutes. If the price of good Y increases, then the A. quantity demanded of good X will increase B. demand for good X will increase C. demand for good X will decrease D. quantity demanded of good X will decrease
Sign Up Forgot Password?