You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that
A) salsa and tortilla chips are substitutes.
B) salsa and potato chips are complements.
C) tortilla chips and potato chips are complements.
D) salsa and tortilla chips are complements.
Question 2
Suppose that an Intel worker rearranges existing machines and labor and increases the quantity of chips Intel can produce. Using the productivity curve graphed, this innovation would be described as
A) a movement upward along the curve.
B) a movement downward along the curve.
C) a shift of the curve upward.
D) a shift of the curve downward.
E) no change to the productivity curve.
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