Answer:
The correct answer is option b.
Explanation:
Mayonnaise and miracle whip are substitutes. This means they can be used in each other's place. The substitute goods have a positive price elasticity, that is when the price of a good increases the demand for its substitute will increase.
This is because when the price of a product increases, the consumers will prefer its cheaper substitute. So the demand for substitutes will increase.
We are aware that the price of a product is inversely related to its quantity demanded. So when there is a decrease in the price, the quantity demanded decreases. This is shown by a movement along the same demand curve, the demand though remains the same.
