If Salsa and Nacho Chips Are Complements, an Increase in the Price

question 121

Multiple Choice

If salsa and nacho chips are complements, an increase in the price of nacho chips would

• A) increase the price of salsa.
• B) decrease the demand for salsa.
• C) increase the demand for salsa.
• D) have no effect on the demand for salsa.

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Definitions:

Polarization Effect

A process whereby a group's viewpoints become more extreme as the members discuss and reinforce one another's attitudes, often leading to a more pronounced division.

Recency Effect

The tendency to evaluate others in terms of the most recent impression.

Social Influence

The area of social psychology that studies the ways in which people influence the thoughts, feelings, and behavior of others.

Pressure to Conform

The social influence that encourages individuals to align their behavior or beliefs with those of a group.