The only goods you consume are pizza and soda. Both are normal goods. You consider pizza and soda to be substitutes. Which of the following will lead you to eat more pizza?
A) The price of a pizza falls.
B) The price of a soda falls.
C) The price of a soda rises.
D) Both answers A and C are correct.

Question

Quizplus · Accepted Answer

A decrease in the price of pizza makes it cheaper, leading to more consumption. An increase in the price of soda, a substitute, will also lead to more pizza consumption as consumers switch from soda to pizza.

The Only Goods You Consume Are Pizza and Soda