If the price of hot dogs decreases, then: A

Economics Dec 18, 2020

If the price of hot dogs decreases, then:

A. The supply of hot dogs will decrease

B. The quantity demanded of hot dogs will fall

C. The demand for hot dogs will rise

D. The demand for buns will increase

Expert Solution

The answer to this question is:

D. The demand for buns will increase

Hot dogs and buns are used together, that is, they are complements. Hence, when the price of hot dogs declines, the quantity of hot dogs purchased will increase. The surge in consumption of hot dogs will also increase the demand for buns.

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