If the price of a substitute (Y) of good X increases, what impact does it have on the equilibrium price and quantity of good X?

If the price of a substitute (Y) of good X increases, what impact does

1.	If the price of a substitute (Y) of good X increases, what impact does it have on the equilibrium price and quantity of good X?
Answer» Solution :An INCREASE in PRICE of a substitute(Y) of GOOD X will directly affect the equilibrium price and quantity of good X. Rise in price of Y will make X relatively cheaper and DEMAND for X will rise. It will lead to excess demand. It will lead to increase in both equilibrium price and equilibrium quantity.