Jelly beans and popcorn are substitutes. A fall in the price of a bag of jelly beans will the demand for popcorn and the price of popcorn will .

Question

Quizplus · Accepted Answer

Jelly beans and popcorn are substitutes, which means that they can be used interchangeably to satisfy a consumer's wants. When the price of a substitute (jelly beans) decreases, consumers tend to switch to that product, so the demand for popcorn, another substitute, will decrease. This decrease in demand will lead to a fall in the price of popcorn. Therefore, the correct answer is B) decrease; fall.

Jelly Beans and Popcorn Are Substitutes