For Consumers,taco Chips and Salsa Are Complements

question 123

Multiple Choice

For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?

• A) The equilibrium price of taco chips falls, and the equilibrium quantity decreases.
• B) The equilibrium price of taco chips rises, and the equilibrium quantity decreases.
• C) There is no change in the equilibrium price of taco chips, and the equilibrium quantity increases.
• D) The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium quantity increases.
• E) The equilibrium price of taco chips rises, and the equilibrium quantity increases.

---

Definitions:

Concentration Ratios

A measure used to determine the level of competition within an industry by analyzing the market share of the largest firms within that market.

Industry Sales

The total revenue generated within a specific industry from the sale of goods and services.

Top Firms

Leading companies in a particular industry, market, or sector based on metrics such as revenue, market share, or innovation.

Percentage Share

A fraction of a whole, expressed as a percentage, representing a part of a total amount or quantity.