Buyers in the market for iPhones learn that the price of the Samsung Galaxy has increased. Explain how this would shift demand in the market for iPhones.

iPhones and Samsung phones can be considered close substitutes, i.e. if the price of one increases, consumers may wish to switch to the cheaper alternative. This means the demand for the substitute will rise. In this particular case, as the price for Samsung phones increases, the demand curve for iPhones is likely to shift outwards/to the right.

TK
Answered by Tamara K. Economics tutor

2642 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How much do I need to write for the long answer questions/essays at the end of the paper?


What are the possible effects of a decrease in the interest rate set by the central bank?


Explain the Macro-economic benefits of globalisation.


Using a diagram, explain how an economy's exchange rate is determined. 4 marks. AS Level The National and International Economy


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences