If sugar and Nutrasweet are substitutes,then we can be certain that a decrease in the price of sugar will lead to an increase in the consumption of:
A) Nutrasweet only.
B) sugar only.
C) sugar and Nutrasweet.
D) None of the preceding statements is correct.

Question

Quizplus · Accepted Answer

If sugar and Nutrasweet are substitutes, then a decrease in the price of sugar will make sugar a relatively cheaper option, and therefore, the consumers will choose sugar over Nutrasweet. Therefore, the increase in the consumption of sugar would be favored over Nutrasweet, making option B the correct answer.

If Sugar and Nutrasweet Are Substitutes,then We Can Be Certain