Question

Raclette is a popular wintertime dish in Switzerland. It is essentially melted Raclette cheese over boiled new potatoes. If the price of Raclette cheese decreased, we would expect to see: an increase in demand for Raclette cheese. an increase in demand for new potatoes. no effect on the demand for either of the Raclette ingredients since this is a traditional dish and its consumption does not depend on the prices of the ingredients. an increase in demand for both Raclette cheese and new potatoes.

Answer 1

Option (b) is correct.

Step-by-step explanation:

Raclette is a popular wintertime dish in Switzerland. Both Raclette cheese and boiled new potatoes are used together to make Raclette.

Therefore, Raclette cheese and boiled new potatoes are complimentary goods because both are used together to satisfy a given want.

In case of complimentary goods, there is an inverse relationship between the price of a good and demand for its complimentary good.

Hence, if there is a decrease in the price of Raclette cheese then as a result the demand for new potatoes increases.

So, the correct option is (b).