Suppose oranges and clementines are substitutes. Holding everything else constant, if the price of oranges decreases, then the demand for _____ will _____.
A)clementines; increase
B)clementines; decrease
C)oranges; increase
D)oranges; decrease

Question

Quizplus · Accepted Answer

When the price of oranges decreases, consumers are more likely to buy oranges instead of their substitute, clementines, leading to a decrease in the demand for clementines.

Suppose Oranges and Clementines Are Substitutes