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» <html><body><p></p>Solution :An <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> in <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> of a substitute(Y) of <a href="https://interviewquestions.tuteehub.com/tag/good-1009017" style="font-weight:bold;" target="_blank" title="Click to know more about GOOD">GOOD</a> <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a> will directly affect the equilibrium price and quantity of good X. Rise in price of Y will make X relatively cheaper and <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> for X will rise. It will lead to excess demand. It will lead to increase in both equilibrium price and equilibrium quantity.</body></html>