Question

An economist has conducted extensive research and has found that jones cola is a substitute for tucker cola. ceteris paribus, the price of jones cola increases. the impact on the demand curve for tucker cola is a(n):

Answer 1

Answer: Increase in demand

Step-by-step explanation: Change in demand occurs when factors affecting demand other the its price changes. While, a change in quantity demanded occurs when the price of the good changes other things constant. Since, jones cola and tucker cola are substitutes to each other. A rise in the price of jones cola will shift demand towards tucker cola. This, will lead to a rightward shift in the demand curve for tucker cola and an increase in demand for tucker cola.