
"Because chips and salsa are complements, an increase in the price of chips will cause the demand for salsa to decrease.This initial shift in demand for chips results in a higher price for chips; this higher price will cause the demand curve for chips to shift to the right." Which of the following correctly comments on this statement?
A) The statement will be true if consumer tastes for chips and salsa do not change.
B) The statement is false because a change in the price of chips would not change the demand for chips.
C) The statement is false because salsa is an inferior good; chips are normal goods.
D) The statement is false because one cannot assume that chips and salsa are complements for all consumers.
Correct Answer:
Verified
Q203: "Because apples and oranges are substitutes, an
Q204: Select the phrase that correctly completes the
Q205: Figure 3-8 Q206: What would happen in the market for Q207: The following appeared in a Florida newspaper Q209: Figure 3-8 Q210: Suppose the cost of growing organic corn Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents