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.

Identify the characteristics and implications of constant-cost, increasing-cost, and decreasing-cost industries.

Differentiate between short-run and long-run decision-making in purely competitive markets.

Recognize the conditions under which firms enter or exit the market.

Comprehend the relationship between price, average total cost, and marginal cost in long-run equilibrium.

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Definitions:

Internal Stimulus

Psychological or emotional factors within an individual that trigger a desire or need, prompting them to make a purchase or decision.

Low-involvement Purchase

Buying decisions made by consumers with minimal research and consideration as the product is often inexpensive and perceived as low risk.

Forethought

The act of thinking and planning activities or events in advance, demonstrating anticipation and careful consideration.

Low-involvement Products

Goods or services that require minimal thought and effort from consumers before purchase due to their low cost or risk, such as everyday household items.