Question
C. How will changes in ketchup affect the french fries industry, which is a complementary good to ketchup?
1. Supply OR demand of French fries
2. Equilibrium price and quantity of French fries
Answer
1. Changes in ketchup are likely to affect the demand for French fries, as they are a complementary good. If ketchup becomes more popular, the demand for French fries may increase as well.
2. The equilibrium price and quantity of French fries may increase if the demand for French fries increases due to changes in ketchup. However, this would depend on the elasticity of demand for French fries and the availability of substitutes.