Peter's Pizzeria sells both pizzas and wings.It wants to increase the sales of its pizzas.If it decides to increase the price of the wings,it is assuming that
A)the pizza and the wings are substitutes
B)the pizza and the wings are complements
C)the pizza and the wings are unrelated in demands
D)it cannot increase the sales of its pizzas

Question

Peter's Pizzeria sells both pizzas and wings.It wants to increase the sales of its pizzas.If it decides to increase the price of the wings,it is assuming that​
A)​the pizza and the wings are substitutes
B)the pizza and the wings are complements
C)the pizza and the wings are unrelated in demands
D)​it cannot increase the sales of its pizzas

Quizplus · Accepted Answer

If Peter's Pizzeria increases the price of wings assuming that pizza and wings are substitutes, customers may choose to purchase more pizzas instead of wings, ultimately increasing the sales of pizzas. This would not be a viable strategy if the pizza and wings were complements or unrelated in demand.

Peter's Pizzeria Sells Both Pizzas and Wings