Bikes and roller blades are substitutes.Marginal utility theory predicts that when the price of a bike rises,the quantity of bikes demanded
A)decreases and the demand curve for roller blades shifts rightward.
B)decreases and the demand curve for roller blades shifts leftward.
C)decreases and a movement occurs down along the demand curve for roller blades.
D)increases and the demand curve for roller blades shifts rightward.
E)increases and the demand curve for roller blades shifts leftward.

Question

Quizplus · Accepted Answer

Since bikes and roller blades are substitutes, an increase in the price of bikes would lead to a decrease in the quantity of bikes demanded and an increase in the demand for roller blades, shifting the demand curve for roller blades rightward.

Bikes and Roller Blades Are Substitutes