If sugar and Nutrasweet are substitutes,then we can be certain that an increase 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 becomes more expensive, consumers are likely to switch to the substitute good, Nutrasweet, in order to save money. Therefore, an increase in the price of sugar should lead to an increase in the consumption of Nutrasweet only.

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