Suppose the Price of Potato Chips Increases

question 157

Multiple Choice

Suppose the price of potato chips increases.Other things constant, what will happen to the demand for potato-chip dip?  

• A) It will increase because the goods are substitutes. 
• B) It will decrease because the goods are substitutes. 
• C) It will decrease because the goods are complements. 
• D) It will increase because the goods are complements.

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Definitions:

Cash Outflow

A financial term indicating the outflow of cash from a business or individual for expenses, investments, and other transactions.

Guaranteed Rate

A fixed interest rate assured by a lender or issuer for a specified period.

Discount Factor

A multiplier used to determine the present value of future cash flows or investments.

Working Capital

The measure of a company's short-term financial health and operational efficiency, calculated as current assets minus current liabilities.