suppose honey and jam are substitutes An increase in price o

suppose honey and jam are substitutes. An increase in price of jam will cause a

A. leftward shift of the demand curve for honey.
B. rightward shift of the demand curve for honey.
C. rightward shift of the demand curve for jam.

Solution

Correct option is (B).

Higher price of jam will lower the quantity demanded of jam (causing an upward movement along demand curve for jam), and increase the demand for honey, its substitute, thus shifting demand curve for honey towards right.