Honey and jam are substitute products. If the price of honey increases, the demand for:
A) honey will increase.
B) honey will decrease, causing its price to fall.
C) jam will increase, causing the price of jam to increase as well.
D) jam will decrease, causing the price of jam to fall.

Question

Quizplus · Accepted Answer

When the price of honey increases, consumers may switch to jam, a substitute, leading to an increase in the demand for jam and potentially causing its price to rise.

Honey and Jam Are Substitute Products