When the price of a substitute good rises, what typically happens to the demand curve of the related good?

When the price of a substitute good rises, consumers tend to shift their purchasing behavior toward the related good because it now appears more appealing in comparison. This change in consumer preference leads to an increase in the quantity demanded for the related good. As a result, the demand curve for the related good shifts to the right, indicating a higher demand at every price level.

This shift reflects the fundamental principle of substitution in economics, whereby as one good becomes more expensive, consumers are motivated to seek alternatives that offer better value. Consequently, the demand for the good that is not experiencing a price increase increases as people adjust their consumption habits. This relationship is key to understanding how demand shifts in response to changes in market conditions related to substitute goods.