If a drop in the price of taxicab fares shifts the demand curve of private limousine rentals leftward, what does this signify

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04-09-2017
Business

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If a drop in the price of taxicab fares shifts the demand curve of private limousine rentals leftward, what does this signify

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Kalahira Kalahira · Answer 1 · 2017-09-13T16:32:12+02:00

Kalahira Kalahira

13-09-2017

These two services are substitutes. The demand for one good has an effect on the demand for another good. In this case, the lowered price of the taxi fares will lead to a lowered price for the use of the limo rentals, all else held constant.

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