Jelly beans and popcorn are substitutes. A fall in the price of a bag of jelly beans will________ the demand for popcorn and the price of popcorn will________ .
A) increase; rise
B) decrease; rise
C) decrease; fall
D) increase; fall

Question

Quizplus · Accepted Answer

A fall in the price of a bag of jelly beans will make jelly beans more attractive to consumers, leading to an increase in the demand for jelly beans. As jelly beans and popcorn are substitutes, a decrease in the demand for popcorn will occur. The decrease in demand for popcorn will lead to a fall in the price of popcorn.

Jelly Beans and Popcorn Are Substitutes