Assume That Tortilla Chips and Salsa Are Complements

question 269

Multiple Choice

Assume that tortilla chips and salsa are complements.When the price of tortilla chips decreases,

• A) the demand for salsa increases.
• B) the demand for salsa decreases.
• C) the supply of salsa decreases.
• D) the demand for tortilla chips decreases.

---

Definitions:

Liabilities

Liabilities that a business must settle in the future, representing the financial debts owed to external parties.

Prepaid Expenses

Costs that have been paid in advance for goods or services to be received in the future.

Unearned Revenues

Money received by a company for goods or services that have not yet been provided to the customer.

Adjusting Entries

Journal entries made in an accounting period to allocate income and expenditure to the correct periods.