Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 3 - Demand, Supply, and Market Equilibrium - Questions: 3b

Answer

If the price of large automobiles increases, the demand of small cars would increase and shift to the right.

Work Step by Step

If the price of large automobiles increases, the demand of small cars would increase and shift to the right because large automobiles are a substitute good for the small cars, and as the price of the substitute of a good increases, the demand for the good increases.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.