A new substitute enters the market causing a shift in the demand curve in the graph. What is the new equilibrium point after the substitute enters the market?
(Hint: Determine which direction a substitute shifts the demand curve and use that direction to pick the resulting equilibrium point.)
$15
P
X
1,000 1,500
$10+
500
O $10 and 1,500
O $7.50 and 1,250
$10 and 1,250
O$7.50 and 1,500