Suppose That X and Y Are Substitute Goods

question 42

Multiple Choice

Suppose that X and Y are substitute goods. If the price of good X increases, we can expect:

• A) the demand for good X to shift to the left.
• B) an upward movement along the demand curve for good Y.
• C) the demand curve for good Y to shift to the right.
• D) a downward movement along the demand curve for good Y.
• E) the demand curve for good Y to shift to the left.

---

Definitions:

Cooperative Advertising

Advertising programs whereby a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.

Camera-Ready

A term used to describe a document or artwork that is fully prepared, in the correct format, and ready for reproduction or printing.

High-Quality

Characterizing products or services that meet or exceed customer expectations in terms of durability, reliability, and performance.

Trade Promotions

Marketing activities and incentives aimed at wholesalers, retailers, or other organizational buyers to stimulate immediate sales.