Assume lettuce and salad dressing are complements in consumption.An increase in the price of lettuce will
A)Lead to a fall in the demand for salad dressing
B)Lead to a fall in the quantity demanded of salad dressing
C)Have no impact on the demand for salad dressing
D)Lead to a fall in the supply of salad dressing
E)Lead to a rise in the supply of salad dressing

Question

Quizplus · Accepted Answer

When two goods are complements in consumption, an increase in the price of one good will decrease the demand for both goods. Therefore, an increase in the price of lettuce will lead to a fall in the demand for salad dressing, as consumers will likely purchase less lettuce and therefore need less dressing.

Assume Lettuce and Salad Dressing Are Complements in Consumption