Asked by Shaunn Wilson on Sep 24, 2024
Verified
Peter's Pizzeria sells both pizzas and wings.It wants to increase the sales of its pizzas.If it decides to increase the price of the wings,it is assuming that
A) the pizza and the wings are substitutes
B) the pizza and the wings are complements
C) the pizza and the wings are unrelated in demands
D) it cannot increase the sales of its pizzas
Substitutes
Products or services that can be used in place of others to satisfy similar needs or desires, often influencing consumer choices and market dynamics.
Complements
Goods or services that are used together, where the consumption of one typically enhances the value or desire for the other.
Peter's Pizzeria
A hypothetical or specific restaurant business specializing in the preparation and sale of pizzas.
- Grasp the concept of complementary and substitute goods in the context of market strategies.
Verified Answer
LF
Lauren Flaherty3 days ago
Final Answer :
A
Explanation :
If Peter's Pizzeria increases the price of wings assuming that pizza and wings are substitutes, customers may choose to purchase more pizzas instead of wings, ultimately increasing the sales of pizzas. This would not be a viable strategy if the pizza and wings were complements or unrelated in demand.
Learning Objectives
- Grasp the concept of complementary and substitute goods in the context of market strategies.