Final answer:
If the price of ham rises, the demand for ham decreases, and so does the demand for a complementary good such as cheese. Therefore, the correct answer is C. demand for cheese decreases.
Step-by-step explanation:
When we consider that ham and cheese are complementary goods, a change in the price of one affects the demand for the other. Specifically, if the price of ham rises, one would expect the demand for ham itself to decrease due to the law of demand, which states that as the price of a good increases, the quantity demanded of that good decreases. However, the question asks about the effect on the demand for cheese. Because ham and cheese are often consumed together, the higher price for ham will likely lead to a decrease in the consumption of ham, and consequently, the demand for cheese will also decrease as people will buy less of both.
Therefore, the correct answer is: C. demand for cheese decreases.