"Because Chips and Salsa Are Complements, an Increase in the Price

question 3

Multiple Choice

"Because chips and salsa are complements, an increase in the price of chips will cause the demand for salsa to decrease.This initial shift in demand for chips results in a higher price for chips; this higher price will cause the demand curve for chips to shift to the right." Which of the following correctly comments on this statement?

• A)The statement will be true if consumer tastes for chips and salsa do not change.
• B)The statement is false because a change in the price of chips would not change the demand for chips.
• C)The statement is false because salsa is an inferior good; chips are normal goods.
• D)The statement is false because one cannot assume that chips and salsa are complements for all consumers.

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Definitions:

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A psychological state where an individual experiences discomfort due to holding contradictory beliefs or attitudes, leading to an alteration in one of the conflicting elements.

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The study of what drives individuals to initiate, direct, and sustain behaviors to satisfy their needs and achieve goals.