Business: If the price of a good rises, what impact will this have on a cheaper substitute good?
First of all, for the purposes of this assignment, it is important to note that a substitute good is one that can be used in the place of another. This means that in a competitive consumer market, consumers have the ability to switch from one good to another (Samuelson, 2006, p.57). There are various factors that cause customers to prefer one good to the other. One of these factors is pricing. In case one of the substitutes good raises its price, there is a greater likelihood that there will be more demand of the cheaper substitute good. Many people would opt ...
