Ask Question
4 June, 02:15

Assume that jelly beans and chocolate bars are substitute goods. If the price of jelly beans increases, what will happen to the demand for chocolate bars?

+2
Answers (1)
  1. 4 June, 03:18
    0
    Demand for chocolate bars increases.

    Explanation:

    There are two goods: jelly beans and chocolate bars. They are substitute goods. We know that there is a positive relationship between the price of one good and the demand for other good. The substitute goods are generally have a positive cross price elasticity of demand.

    This means that as the price of jelly beans increases then as a result the demand for chocolate bars increases even if the price chocolate remains the same.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume that jelly beans and chocolate bars are substitute goods. If the price of jelly beans increases, what will happen to the demand for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers