If the amount of carbonated sodas consumed continues to decline as consumers continue to choose to buy healthier products, this will likely
A)increase the demand for premium water, because premium water and carbonated sodas are considered complements.
B)increase the demand for premium water, because premium water and carbonated sodas are considered substitutes.
C)decrease the demand for premium water, because premium water is considered an inferior good and carbonated sodas are considered normal goods.
D)decrease the demand for premium water, because premium water is considered a normal good and carbonated sodas are considered inferior goods.

Question

Quizplus · Accepted Answer

Carbonated sodas and premium water are considered substitutes, as consumers may choose to switch from one to the other based on their preference for healthier options. Therefore, as the demand for carbonated sodas declines, the demand for premium water is likely to increase.

If the Amount of Carbonated Sodas Consumed Continues to Decline