4.If the price of product L increases, the demand curve for elose-substitute pro

Question

4.If the price of product L increases, the demand curve for elose-substitute product J will: A. shift downward toward the horizontal axis. B. shift to the left. C. shift to the right. D. remain unchanged. 5. Which of the following would most likely increase the demand for gasoline? A. The expectation by consumers that gasoline prices will be hight in the B. The expectation by consumers that gasoline prices will be lower in the future C. A widespread shift in car ownership from SUVs to hybrid sedans D. A decrease in the price of public transportation 6, In which ofthe following statements are the terms-demand-ond-quantity correctly? When the price of ice cream rose, the demand for both ice eream and demand o A. tell. When the price of ice eream rose, the quantity oppings fell d ot os B. fell, and When the price ofice cream rose, the demand for ice creanm toppings fell G correctly. the terrns D. None ofthese statements use of a product: 7, A government subsidy to the A. reduces product supply. B. increases product supply. C reduces product demand D. increases product demand

Explanation / Answer

4. Option C: shift to the right.

Explanation: When the price of a product increases, the demand for the substitute good will increase even though there is no change in the price of the substitute good. The demand curve of a good shifts when the quantity demanded of the good changes for factors other than price. Here, the demand for the substitute good is increasing for factors other than price. So, the demand curve of the substitute good will shift and it will shift towards the right as the demand increased. It would have shifted to the left if the demand decreased.

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.