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Jelly Beans and Popcorn Are Substitutes

question 51

Multiple Choice

Jelly beans and popcorn are substitutes. A fall in the price of a bag of jelly beans will________ the demand for popcorn and the price of popcorn will________ .


Definitions:

Equilibrium

A state in which demand and supply are balanced, often resulting in a stable market condition where there is no tendency for change until external factors intervene.

Online Movie Rentals

The service of renting movies over the internet, allowing users to stream or download movies for a limited period of time.

Quantity Supplied

The level of goods or services available for sale by producers, who are willing and able to provide them, at a predetermined price over an agreed period.

Excess Supply

A market condition where the quantity of a good supplied is greater than the quantity demanded at the current price.

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