Cupcakes and Granola Bars Are Substitutes in Consumption

question 338

Multiple Choice

Cupcakes and granola bars are substitutes in consumption. The price of a granola bar increases so the demand for

• A) granola bars will increase, that is, the demand curve will shift rightward.
• B) cupcakes will increase, that is, the demand curve will shift rightward.
• C) granola bars will decrease, that is, the demand curve will shift leftward.
• D) cupcakes will decrease, that is, the demand curve will shift leftward.

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Definitions:

Behavior

Observable actions or responses of an individual or a group that can be directly measured or recorded.

Describe Behavior

To detail or report the actions and reactions of an individual or group, often within a specific context or environment.

Purchasing Patterns

The behavior exhibited by consumers in buying goods or services, including frequency, timing, and choice preferences.

Basic Research

Fundamental research aimed at increasing the scientific knowledge base without necessarily aiming for immediate practical application.