Question

1. ceteris paribus, which of the following is most likely to cause an increase in the quantity demanded of potato chips?○ a decrease in the price of dip.○ an increase in the price of potato chips.○ a decrease in the price of potato chips○ pretzels are on sale this week.

Explanation:

The quantity demanded of a good changes only in response to its own price, per the law of demand (inverse relationship between price and quantity demanded). Other factors affect demand (not quantity demanded): dip is a complement (lower dip price increases demand for chips), pretzels are a substitute (sale reduces demand for chips), and higher chip price decreases quantity demanded. Only a lower chip price increases its quantity demanded.

Answer:

a decrease in the price of potato chips