Asked by Achera Weaver on May 05, 2024

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French fries and hamburgers are complements in consumption.Suppose the cost of the ingredients used to make hamburgers rises,so that the price of a hamburger rises.Then the equilibrium price of french fries _____ and the equilibrium quantity _____.

A) rises;increases
B) rises;decreases
C) falls;increases
D) falls;decreases

French Fries

A popular fast food made by cutting potatoes into strips and deep-frying them until they are crispy.

Hamburger Ingredients

The various components required to make a hamburger, such as ground meat, lettuce, tomato, buns, and condiments.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to a balance without excess supply or demand.

  • Differentiate between complements and substitutes in consumer behavior and their impacts on market dynamics.
  • Assess the impact of variations in production expenses on market balance.
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ZK
Zybrea KnightMay 05, 2024
Final Answer :
D
Explanation :
When the cost of ingredients for hamburgers rises, leading to an increase in hamburger prices, demand for french fries (a complement good) decreases. This results in a lower equilibrium price and quantity for french fries.