Answer to Question #178071 in Microeconomics for Moiz khan

Question

If peas and beans are substitutes of each other an increase in the price of peas will:

A:increase the quantity of beans demanded

B:Increase the price of beans and quantity sold

C:Decrease the quantity of peas sold

D:All of the above

Answer 1

Since the peas and beans are substitutes, an increase in the price of peas will increase the quantity of beans demanded. Therefore, the correct answer is (A).

Answer:

A: increase the quantity of beans demanded.