Pepsi and Pizza Are Normal Goods

question 284

Multiple Choice

Pepsi and pizza are normal goods. When the price of pizza rises, the substitution effect causes Pepsi to be relatively

• A)more expensive, so the consumer buys more Pepsi.
• B)more expensive, so the consumer buys less Pepsi.
• C)less expensive, so the consumer buys more Pepsi.
• D)less expensive, so the consumer buys less Pepsi.