For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?
A) The equilibrium price of taco chips falls, and the equilibrium quantity decreases.
B) The equilibrium price of taco chips rises, and the equilibrium quantity decreases.
C) There is no change in the equilibrium price of taco chips, and the equilibrium quantity increases.
D) The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium quantity increases.
E) The equilibrium price of taco chips rises, and the equilibrium quantity increases.

Question

Quizplus · Accepted Answer

Taco chips and salsa are complementary goods, which means that they are typically consumed together. If the price of salsa rises, consumers will likely purchase less salsa, and therefore, they will also purchase fewer taco chips. As a result, the demand for taco chips will fall, which will lead to a decrease in the equilibrium price and quantity of taco chips.

For Consumers,taco Chips and Salsa Are Complements