If yoghurt and smoothies are substitutes in consumption, then a rise in the price of yoghurt will cause the:
A)demand for smoothies to increase.
B)demand for smoothies to decrease.
C)supply of smoothies to increase.
D)supply of smoothies to decrease.

Question

Quizplus · Accepted Answer

When there is a rise in the price of yoghurt, consumers will be less likely to purchase it and may instead choose to buy smoothies as an alternative. This will cause the demand for smoothies to increase.

If Yoghurt and Smoothies Are Substitutes in Consumption, Then a Rise