Answer:
Both price and quantity rise
Explanation:
The reduction in soda prices boosts soda demand. As moviegoers typically enjoy popcorn along with their drinks, this spike in soda demand can lead to increased demand for popcorn, thereby raising both its price and quantity.
The sunk cost amounts to $70. Sunk Cost describes an expense that has already been incurred and is non-recoverable. Typically, these costs are ignored in decision-making as they cannot be avoided regardless of the decisions made. In this scenario, Damon Rutton spent $70 on a ticket, which is the only pre-paid expense; any additional costs for parking or refreshments would only be incurred if he chooses to attend the game.
