Scenario 7-1 Use the Information Below to Answer the Following Question(s)

question 112

Multiple Choice

Scenario 7-1
Use the information below to answer the following question(s) .
JoAnn considers cola and plain sparkling water to be good substitutes.Suppose the price of sugar,a key ingredient used to produce cola,falls.
-Refer to Scenario 7-1.According to the substitution effect,which of the following is most likely to occur?

• A)JoAnn will purchase less cola and more sparkling water.
• B)JoAnn will purchase more cola and less sparkling water.
• C)JoAnn will purchase more of all goods due to her higher real income.
• D)JoAnn's demand curve will decrease (shift in),causing her to purchase less cola.