For consumers, corn chips and salsa are complements. If the price of salsa rises, what is the effect on the equilibrium price and quantity of corn chips?
A) The equilibrium price of corn chips falls, and the equilibrium quantity decreases.
B) The equilibrium price of corn chips rises, and the equilibrium quantity decreases.
C) The equilibrium price of corn chips rises, and the equilibrium quantity increases.
D) There is no change in the equilibrium price of corn chips, and the equilibrium quantity increases.
E) The equilibrium price of corn chips could rise, fall or stay the same, and the equilibrium quantity increases.
Correct Answer:
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