Answer to Question #317567 in Macroeconomics for Kuhle

Question

If there is an increase in the price of dvds , a substitute in production for cds then

Answer 1

If there is an increase in the price of dvds , a substitute in production for cds, then the demand for cds will rise. This is because substitutes provide the consumer with an alternative option, and cds will become relatively cheaper to dvds.