Asked by
Anthony Harkness
on Oct 09, 2024
Verified
Suppose that tacos and pizza are substitutes,and that soda and pizza are complements.We would expect an increase in the price of pizza to:
A) reduce the demand for tacos and increase the demand for soda.
B) reduce the demand for soda and increase the demand for tacos.
C) increase the demand for both soda and tacos.
D) reduce the demand for both soda and tacos.
Substitutes
Products or services that can replace each other in use, where an increase in the price of one leads to an increase in demand for the other.
Complements
Goods that are often used together, where the increase in the consumption of one leads to an increase in the consumption of the other.
- Recognize the traits and results of products being complements or substitutes.
Verified Answer
LW
Learning Objectives
- Recognize the traits and results of products being complements or substitutes.