The number of cases of Coca-Cola bought increased by 50 percent when the price of pretzels declined by 10 percent. Assuming other factors are held constant, Coca-Cola and pretzels are classified as:
A) complements.
B) unrelated goods.
C) substitutes.
D) social goods.

Question

Quizplus · Accepted Answer

Coca-Cola and pretzels are complementary goods. The increase in the quantity demanded of Coca-Cola shows that it is typically consumed together with pretzels. The inverse relationship between the price of pretzels and the quantity demanded of Coca-Cola confirms that both goods are complements.

The Number of Cases of Coca-Cola Bought Increased by 50