Homework Answers
If both goods are complements, increase in price of one good decreases the demand for another as a result of which when the price of potato soup increases, the demand curve shifts downward for tomato soup as both are complements as a result of which, the equilibrium price decreases.
Therefore (B) a decrease in the price of tomato soup is the answer
Because both are complements, there would a decrase in demand and decrease in price for tomoato soup is observed and not increase,
Therefore (D) is wrong
Because they are complements change in price will have an effect on tomato soup
Therefore (A) is wrong
There will only be a change in the demand curve and not supply curve and that's the reason why
(C) is wrong.
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