"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:

Hertz

In the International System of Units (SI), the measure of frequency that is equivalent to one cycle every second.

Genetic Predisposition

An inherited genetic pattern that increases the likelihood of developing certain traits, conditions, or diseases.

Nutritive Substances

Compounds that provide nourishment essential for the growth and maintenance of life, typically including proteins, carbohydrates, fats, vitamins, and minerals.

Taste Buds

Small sensory organs on the tongue and other parts of the mouth that are sensitive to the taste of food and drink.