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

2536 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is the difference between factors that affect supply and the elasticity of supply?


How can I evaluate the extent to which increased competition leads to higher levels of economic efficiency?


Define the term ‘subsidies’ .


Using the data in Extract A, calculate, to one decimal place, the percentage change in the total net trade balance in goods with the UK’s top five trade partners from February - April 2012 to February–April 2013.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences