An increase in the price of Heinz ketchup is likely to cause a(n) _____ in the demand for Hunt's ketchup, due to a change in _____.
A) increase; consumer preferences
B) increase; the price of a substitute good
C) decrease; consumer preferences
D) increase; the price of a complementary good

Question

Quizplus · Accepted Answer

An increase in the price of Heinz ketchup will make Hunt's ketchup a more attractive substitute good, leading consumers to switch to it and increase its demand. Therefore, the answer is (B) an increase in the demand for Hunt's ketchup due to a change in the price of a substitute good.

An Increase in the Price of Heinz Ketchup Is Likely