In consumer equilibrium, Harold consumes pizza, sodas, and other goods. Pizza and soda are complements for Harold. The price of a pizza rises while his income remains the same. Harold then consumes
A) more pizza and less soda.
B) more pizza and more soda.
C) less pizza and less soda.
D) less pizza and more soda.

Question

Quizplus · Accepted Answer

When the price of pizza rises, Harold will consume less pizza due to the higher cost. Since pizza and soda are complements, consuming less pizza will also lead to consuming less soda.

In Consumer Equilibrium, Harold Consumes Pizza, Sodas, and Other Goods