If the price of potato chips rises and the demand for pretzels rises,then potato chips and pretzels are:
A) Substitutes.
B) Complements.
C) Price inelastic goods.
D) Price elastic goods.

Question

Quizplus · Accepted Answer

If the price of potato chips rises, consumers may choose to switch to purchasing pretzels instead, since they are similar snacks. This indicates that potato chips and pretzels are substitutes. The rise in demand for pretzels also supports this conclusion, as consumers are choosing it as an alternative to the more expensive potato chips.

If the Price of Potato Chips Rises and the Demand