If the cost of a substitute product increases

Reference no: EM1337876

Price of a substitute product

If the price of a substitute product increases, which of the following is most likely to happen in the market for the product under consideration in the short run?

supply will increase

firms will leave the market

firms in the market will devote more of their variable inputs to the making of this product.

firms in the market will devote less of their variable inputs to the making of this product.

Reference no: EM1337876

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