Question

Grapes are an input in the production of wine, and wine and red meat are complements. a decrease in the price of grapes will _________ the total surplus in the market for red meat.

Answer 1

A decrease in the price of grapes will INCREASE the total surplus in the market for red meat. Two goods are said to be complement if using more of one will lead to using more of the other. A decrease in the price of grapes will increase the demand for grapes and this in turn will result in increase in demand for red meat. If the demand for red meat is increased,  the total surplus for red meat will also increase.

Answer 2

Answer:

increase

Explanation:

A decrease in the price of grapes will ultimately lead to an increase in the quantity of wine consumed. Since wine and red meat are complements, the consumption of red meat will increase in tandem with this increase in wine consumption.