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What would happen to the demand curve wh...

What would happen to the demand curve when there is an increase in the price of substitute products ?

A

Outward shift

B

Remains constant

C

Initially inward and then after a period outward shift

D

Inward shift

Text Solution

Verified by Experts

The correct Answer is:
A

From the diagram When the price of the product increases then the customer will move to its substitute product and suddenly the demand for the substitute product will rise From D to D’ which meSol that there is an outward shift in the graph.
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