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 statements is correct.

Question

Quizplus · Accepted Answer

Sugar and Nutrasweet are substitutes, which means that as the price of sugar decreases, people will switch from using Nutrasweet to sugar. Therefore, a decrease in the price of sugar will lead to an increase in the consumption of sugar only, not Nutrasweet.

If Sugar and Nutrasweet Are Substitutes, Then We Can Be