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 - Page 66: 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.
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