Pepsi and Pizza Are Normal Goods

Multiple Choice

Pepsi and pizza are normal goods. When the price of pizza rises, the substitution effect causes Pepsi to be relatively

A) more expensive, so the consumer buys more Pepsi.
B) more expensive, so the consumer buys less Pepsi.
C) less expensive, so the consumer buys more Pepsi.
D) less expensive, so the consumer buys less Pepsi.