Assume That Crackers and Soup Are Complementary Goods

question 11

Multiple Choice

Assume that crackers and soup are complementary goods. The effect on the soup market of an increase in the price of crackers (other things being equal) would best be described as a(n) :

• A) decrease in the quantity of soup demanded.
• B) decrease in the demand for soup.
• C) increase in the quantity of soup demanded.
• D) increase in the demand for soup.

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Definitions:

Warranty of Title

A guarantee by a seller to a buyer that the seller has the right to transfer ownership and no undisclosed encumbrances exist.

Patent Violation

The infringement of the exclusive rights attached to a patent, without permission from the patent holder.

Implied Warranty

A legal concept that guarantees a product will meet certain standards of quality and reliability without explicitly stating them in a contract.

Merchantability

A warranty that a product will meet reasonable expectations of quality and functionality at the time of sale.