A 5 percent decrease in the price of avocados leads to a 20 percent increase in the quantity of salsa demanded. It appears that: Question 26 options: Salsa and avocados have a secret relationship that no one (except for the bananas) knows about. salsa is a complement good to avocados. salsa is a substitute good to avocados. there is no relationship between demand for salsa and demand for avocados.

Complementary goods are those goods where change in price of one good leads to change in the demand of its complement good. For example car and gasoline pricesHere answer is "salsa is a complement good to avocados."

Answered: percent decrease in the price of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A 5 percent decrease in the price of avocados leads to a 20 percent increase in the quantity of salsa demanded. It appears that:

Question 26 options:

	Salsa and avocados have a secret relationship that no one (except for the bananas) knows about.
	salsa is a complement good to avocados.
	salsa is a substitute good to avocados.
	there is no relationship between demand for salsa and demand for avocados.

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