If the price of a good increases, then:

CA Foundation · Business Economics · MTP · January 2025
If the price of a good increases, then:
(A) A. the demand for complementary goods will increase.
(B) B. the demand for the good will increase.
(C) C. the demand for substitute goods will increase.
(D) D. the demand for the good will decrease.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. the demand for substitute goods will increase.

Topics: Theory of Demand and Supply

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