When Wendy's runs a successful television ad for their new Baconator Hamburger,
A) demand for hamburgers at McDonald's increases.
B) consumer incomes increase.
C) demand for french fries at Wendy's increases because these are complementary products.
D) demand for french fries at Wendy's decreases because these are complementary products.
E) consumer incomes decrease.

Question

Quizplus · Accepted Answer

The ad is for a Baconator Hamburger, but it can still have a spillover effect on other products sold at Wendy's. French fries and hamburgers are complementary products, meaning they are often purchased together. Therefore, when demand for the new Baconator Hamburger increases, it is likely that demand for french fries at Wendy's will also increase.

When Wendy's Runs a Successful Television Ad for Their New