Tomato Sauce and Spaghetti Noodles Are Complementary Goods

question 33

Multiple Choice

Tomato sauce and spaghetti noodles are complementary goods. A decrease in the price of tomatoes will

• A)increase consumer surplus in the market for tomato sauce and decrease producer surplus in the market for spaghetti noodles.
• B)increase consumer surplus in the market for tomato sauce and increase producer surplus in the market for spaghetti noodles.
• C)decrease consumer surplus in the market for tomato sauce and increase producer surplus in the market for spaghetti noodles.
• D)decrease consumer surplus in the market for tomato sauce and decrease producer surplus in the market for spaghetti noodles.

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Definitions:

Treasury Bills

Promissory notes issued (at a discount to face value) by the federal government or a provincial government to borrow money for a short term.

Auction

A public sale where goods or property are sold to the highest bidder.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing payroll, accounts payable, and inventories.