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 unrelated in demands c. ​the pizza and the wings are complements d. ​it cannot increase the sales of its pizzas

Respuesta :

Answer:

The correct answer is: a) the pizza and the wings are substitutes.

Explanation:

Analyzing the scenario of the question above, in the case of Peter's pizzeria, which sells pizza and wings and wants to increase the sale of pizzas by adopting a strategy of increasing the price of wings, in this case, he is assuming that pizza and wings are substitutes .

Substitute goods are those that can be consumed in substitution for another good, even if they are in different categories, as long as they perform the same function, but in a different way.