Suppose chicken breasts and barbeque sauce are known to be complements, a change in tastes toward a greater demand for chicken will likely cause:
A)an increase in the price of chicken and a drop in the price of barbeque sauce.
B)an increase in the price of chicken and an increase in the price of barbeque sauce.
C)a drop in the price of chicken and a drop in the price of barbeque sauce.
D)a drop in chicken prices and an increase in the price of barbeque sauce.

Question

Quizplus · Accepted Answer

Since chicken and barbeque sauce are complements, an increase in the demand for chicken will also increase the demand for barbeque sauce. This increase in demand for both products will result in an increase in their respective prices. Therefore, both the price of chicken and barbeque sauce will increase.

Suppose Chicken Breasts and Barbeque Sauce Are Known to Be