In the market for pretzels, which of the following will increase demand? choose one or more: a. if mustard is a complementary good for pretzels, the price of mustard increases. b. if income increases andpretzels are inferior goods. c. if mustard is a complementary good for pretzels, the price of mustard decreases. d. if potato chips are substitute goods for pretzels, the price of potato chips increases. e. if income increases and pretzels are normal goods.

Option(C), (D) and (E) will increase demand for pretzels.

Explanation:

(A) If mustard is a complementary good for pretzels, the price of mustard increases as a result demand for pretzel decreases. Complementary goods are the goods with negative cross price elasticity of demand. This means that as the price of one good increases as a result demand for another good decreases.

(B) If pretzels are inferior goods, as the income increases, this lowers the demand for pretzels. In inferior goods case, income and demand are inversely related with each other.

(C)  If mustard is a complementary good for pretzels, the price of mustard decreases as a result demand for pretzel increases.

(D) If potato chips are substitute goods for pretzels, the price of potato chips increases as a result demand for pretzel increases. Substitute goods are the goods with positive cross price elasticity of demand. This means that as the price of one good increases as a result demand for another good increases.

(E)  If pretzels are normal goods, as the income increases, this increases the demand for pretzels. In normal goods case, income and demand are directly related with each other.

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