What happens to the demand for a substitute good if the price of the original good rises?

When the price of an original good rises, consumers tend to look for alternative options that can fulfill the same need, which leads to an increase in demand for substitute goods. A substitute good is one that can be used in place of another; for example, if the price of coffee rises, consumers may turn to tea instead.

As the original good becomes more expensive, the relative value of substitute goods increases, making them more attractive to consumers. This phenomenon is driven by the basic principles of consumer behavior and the law of demand, which states that, all else being equal, an increase in the price of a good typically results in an increase in demand for substitute goods as people seek to maximize their utility while minimizing costs. Therefore, the rise in price of the original good leads directly to an increase in demand for its substitutes, justifying the choice.