Tuesday
July 22, 2014

Homework Help: Economic

Posted by Candace on Wednesday, March 31, 2010 at 6:08pm.

27.
Rice is what you’ll probably end up with these days if your local McDonald’s is in Indonesia. With the
collapse of the Indonesian currency, the rupiah, in 1998, potatoes...have quintupled in price. That
means rice is turning with an increasing frequency as an alternative to the french fry.... It’s not hard to
fathom why fries are an endangered menu item says Jack Greenberg, CEO of McDonald’s: “No one
can afford them.”
Based on this passage, McDonald’s is serving rice in its Indonesian restaurants because of
a. a decrease in the price of a complement.
b. an increase in the price of a complement.
c. a decrease in price of a substitute.
d. an increase in the price of a substitute.
Its D?

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