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Chipotle and Pancheros are substitutes. If the price of Chipotle increases relative to the price of Pancheros, what would we expect to happen? Question options: Demand for Chipotle will increase Demand for Pancheros will increase Supply for Chipotle will decrease Demand for Pancheros will decrease

User Branko
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\bold{ANSWER:}
Demand for Chipotle will decrease


\bold{EXPLANATION:}

If the price of Chipotle increases relative to the price of Pancheros, we would expect the demand for Chipotle to decrease. This is because consumers tend to substitute one product for another when the price of one increases. In this case, as Chipotle becomes relatively more expensive compared to Pancheros, consumers are likely to shift their preference and demand more of the relatively cheaper Pancheros. Therefore, the correct answer would be: Demand for Chipotle will decrease.
User IMDroid
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