Gum and mints are substitutes. If the price of gum increases, what happens in the market for mints?

• A. The supply curve shifts to the left
• B. The supply curve shifts to the right
• C. The demand curve shifts to the left
• D. The demand curve shifts to the right

Answer: (D)

Verified step by step guidance

1. Identify the relationship between gum and mints: they are substitutes, meaning if the price of one increases, consumers may switch to the other.
2. Consider the effect of an increase in the price of gum: as gum becomes more expensive, consumers will look for alternatives, increasing the demand for mints.
3. Understand the impact on the demand curve for mints: an increase in demand for mints due to the higher price of gum will cause the demand curve for mints to shift to the right.
4. Analyze the options given: a shift to the right in the demand curve indicates an increase in demand, which aligns with the scenario where consumers switch from gum to mints.
5. Conclude that the correct answer is that the demand curve for mints shifts to the right, reflecting the increased demand due to the higher price of gum.