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) increase; fall
C) decrease; fall
D) decrease; rise

Question

Quizplus · Accepted Answer

Jelly beans and popcorn are substitutes, which means that they can be used in place of each other. If the price of jelly beans falls, consumers will likely switch from popcorn to jelly beans, decreasing the demand for popcorn. When demand decreases, the price of popcorn tends to fall as well. Therefore, a fall in the price of jelly beans will decrease the demand for popcorn and the price of popcorn will also fall.

Jelly Beans and Popcorn Are Substitutes