Suppose that tacos and pizza are substitutes, and that soda and pizza are complements. We would expect an increase in the price of pizza to

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Quizplus · Accepted Answer

Since tacos and pizza are substitutes, an increase in the price of pizza would make tacos more attractive, increasing the demand for tacos. Since soda and pizza are complements, an increase in the price of pizza would decrease the demand for soda, as people are less likely to buy pizza and, by extension, soda to go with it.

Suppose That Tacos and Pizza Are Substitutes, and That Soda