Holding all else constant,an increase in the price of hot dogs would cause:
A) the marginal revenue (MR) curve in the market for hot dog buns to increase.
B) the marginal revenue (MR) curve in the market for hot dogs to decrease.
C) the average total cost (ATC) curve in the market for hot dog buns to increase.
D) profits in the market for hot dog buns to increase.
E) the marginal revenue (MR) curve in the market for hot dog buns to shift left.

Question

Quizplus · Accepted Answer

An increase in the price of hot dogs would likely decrease the demand for hot dogs, leading to a decrease in the demand for complementary goods like hot dog buns, causing the MR curve in the market for hot dog buns to shift left.

Holding All Else Constant,an Increase in the Price of Hot