"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:

Impulsivity

A tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.

Type A

Refers to a personality characterized by competitiveness, high ambition, impatience, and a sense of urgency, often linked to stress and cardiovascular diseases.

Heart Attack

A medical condition that occurs when the flow of blood to the heart is blocked, often by a blood clot, leading to damage to the heart muscle.