If bottled water is considered substitutes for soda, the decline in the price of bottled water would, all else equal,
A)increase the demand for soda.
B)decrease the demand for soda.
C)increase the quantity demanded for soda.
D)decrease the quantity demanded for soda.

Question

Quizplus · Accepted Answer

Bottled water is a substitute for soda, meaning consumers may choose to buy bottled water instead of soda to quench their thirst. As the price of bottled water decreases, consumers are more likely to choose bottled water over soda, leading to a decrease in the demand for soda.

If Bottled Water Is Considered Substitutes for Soda, the Decline