The Relationship Between Hamburgers and Ketchup: A Reflective Analysis
What does the behavior of the Ruiz family suggest about the relationship between hamburgers and ketchup?
A) hamburgers and ketchup are complements.
B) hamburgers and ketchup are substitutes.
C) hamburgers and ketchup are normal goods.
D) hamburgers are normal goods and hot dogs are inferior goods.
Answer:
The Ruiz family's behavior illustrates that hamburgers and ketchup are complements.
Reflecting on the behavior of the Ruiz family in increasing their purchases of ketchup when the price of hamburgers decreases allows us to delve into the concept of complementary goods.
When the price of hamburgers decreases, the Ruiz family's demand for ketchup increases. This behavior indicates that they typically consume hamburgers and ketchup together, viewing them as complementary goods.
Complementary goods are pairs of goods that are often used together. In this case, the decrease in hamburger prices makes it more affordable for the family to enjoy hamburgers, leading to an increase in the consumption of ketchup as the two are commonly paired together.
This reflective analysis highlights the interdependent nature of goods and how changes in the price of one item can impact the consumption patterns of another, shedding light on consumer preferences and behaviors.