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3 March, 11:32

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. Firms will devote more variable inputs in the production of this good.

d. Firms will devote less variable inputs in the production of this good.

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  1. 3 March, 11:39
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    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?

    Firms will devote more variable inputs in the production of this good.

    Explanation:

    When there is more variable inputs in the production of goods it gives room to have more substitute goods, hence; increases patronage.
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