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Assume that marijuana and alcohol are substitutes. An increase in the costs of production of alcohol would ________the price of alcohol and ________ the price of marijuana. decrease; increase | decrease; decrease | increase; decrease | increase; increase

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Final answer:

An increase in production costs of alcohol leads to an increased price of alcohol, and due to higher demand, the price of its substitute, marijuana, would also increase.

Step-by-step explanation:

Assuming that marijuana and alcohol are substitutes, an increase in the costs of production of alcohol would increase the price of alcohol and increase the price of marijuana. When the production costs of alcohol go up, alcohol becomes more expensive for consumers. This decreased supply of alcohol can lead to a higher price. As a result, some consumers may turn to substitutes like marijuana, increasing its demand and therefore, potentially leading to an increase in its price as well.

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