The Relationship Between Burgers and Ketchup in Economics

What is the relationship between the price of burgers and the demand for ketchup?

If the price of burgers rises, what happens to the market for ketchup?

Answer:

Decreases demand for ketchup

In the context of economics, burgers and ketchup are considered complementary goods. Complementary goods are goods that are consumed together, meaning that a change in the price of one good affects the demand for the other. In this case, when the price of burgers rises, it is likely that the demand for ketchup will decrease.

When the price of burgers increases, consumers may be less willing to purchase burgers, which could lead to a decrease in the overall demand for burgers. Since ketchup is a complement for burgers, the decrease in demand for burgers will likely lead to a decrease in demand for ketchup as well.

To visually understand this relationship, we can look at a demand curve graph. Assuming that the price of burgers increases, the demand curve for burgers will shift to the left. This shift indicates a decrease in the quantity demanded of burgers at each price level. Consequently, the demand for ketchup, as a complement for burgers, will also decrease.