Suppose that when the price of hamburgers increases,the Ruiz family increases their purchases of hot dogs.To the Ruiz family
A)hamburgers and hot dogs are complements.
B)hamburgers and hot dogs are inferior goods.
C)hamburgers and hot dogs are normal goods.
D)hamburgers and hot dogs are substitutes.

Question

Quizplus · Accepted Answer

The fact that the Ruiz family increases their purchases of hot dogs when the price of hamburgers increases indicates that hamburgers and hot dogs are substitutes. When the price of hamburgers increases, the demand for hamburgers decreases and consumers turn to substitute goods, like hot dogs, which become relatively cheaper in comparison.

Suppose That When the Price of Hamburgers Increases,the Ruiz Family