Potato chips and popcorn are substitutes. A subsidy for potato chips will ______the demand for popcorn and the quantity of popcorn sold will ______.
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase

Question

Quizplus · Accepted Answer

A subsidy for potato chips will lower their price, making them more attractive compared to popcorn, leading to a decrease in the demand for popcorn and consequently a decrease in the quantity of popcorn sold.

Potato Chips and Popcorn Are Substitutes