In the market for blue shirts, if the price of green shirts falls,
a. Which curve will shift?
b. Along which curve will price and quantity move?
c. At the new equilibrium, will price be higher or lower?
d. At the new equilibrium, will quantity be higher or lower?

Respuesta :

Answer:

the demand curve for blue shirts would shift

the blue shirt's demand curve

lower

lower

Explanation

Blue shirts and green shirts are substitute goods.

Substitute goods are goods that can be used in place of another good.

If the price of green shirts falls, green shirts become cheaper and the quantity demanded of green shirts increase.

As a result of the increase in demand for green shirts, the demand for blue shirts would fall. the would lead to a leftward shift of the demand curve. As a result equilibrium price and quantity would fall.