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 statements is correct.

Question

Quizplus · Accepted Answer

Since sugar and Nutrasweet are substitutes, a price increase in sugar will make Nutrasweet relatively cheaper, leading to an increase in its consumption. Therefore, the increase in the consumption will be of Nutrasweet only.

If Sugar and Nutrasweet Are Substitutes, Then We Can Be