If the price of hot dogs increases, this will cause a________ the demand curve for hot dog buns and a ________the supply curve of hot dog buns.

Question

Quizplus · Accepted Answer

If the price of hot dogs increases, it will lead to a decrease in the quantity demanded of hot dogs. This movement along the demand curve will then lead to a shift in the demand curve for hot dog buns. Since hot dogs and hot dog buns are complements, an increase in the price of hot dogs will decrease the demand for hot dog buns, causing a leftward shift in the demand curve. Additionally, there will be no direct effect on the supply curve of hot dog buns since the price of hot dogs does not affect the production or cost of producing hot dog buns. Therefore, the supply curve will only experience a movement along the curve in response to any changes in the price of hot dog buns themselves.

If the Price of Hot Dogs Increases, This Will Cause