If chips and pretzels are substitutes, then when the price of chips decreases, the quantity demanded of chips _____, and the demand for pretzels _____.
A) decreases; decreases
B) decreases; increases
C) increases; increases
D) increases; decreases

Question

Quizplus · Accepted Answer

When the price of chips decreases, the quantity demanded of chips increases because they become more affordable compared to before. As chips and pretzels are substitutes, people will buy more chips instead of pretzels, leading to a decrease in the demand for pretzels.

If Chips and Pretzels Are Substitutes, Then When the Price