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French fries and ketchup are complements. If the American Heart Association announces that eating French fries...

French fries and ketchup are complements. If the American Heart Association announces that eating French fries increases the risk of stroke, this will cause:

  • demand for French fries to increase -- a rightward shift of the demand curve for French fries
  • demand for ketchup to increase -- a rightward shift of the demand curve for ketchup
  • demand for ketchup to decrease -- a leftward shift of the demand curve for ketchup
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Answer #1

Since french fries and ketchup are complements, these are always used together in a certain proportion.

If the American Heart Association announces that eating french fries increases the risk of stroke then it will force people who are concerned about their health to reduce the consumption of french fries which will lead to a fall in the demand of french fries. Since french fries and ketchup are complements, a fall in demand of french fries would also lead to a fall in demand of ketchup and this will shift the demand curve for ketchup to the left. So, the correct answer is 'Option C'.

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