When the price of hot dogs at the supermarket increases,the quantity demanded of hot dog buns declines.This situation describes:
A)the income elasticity of demand for hot dogs.
B)the income elasticity of demand for hot dog buns.
C)the price elasticity of supply for hot dogs.
D)the cross-price elasticity of demand for hot dogs and hot dog buns.
E)the cross-price elasticity of supply for hot dogs and hot dog buns.

Question

Quizplus · Accepted Answer

The relationship described between the price of hot dogs and the quantity demanded of hot dog buns is an example of cross-price elasticity of demand, specifically between hot dogs and hot dog buns. As the price of hot dogs increases, consumers may feel less inclined to purchase hot dog buns to go along with them. This demonstrates a negative cross-price elasticity of demand between the two goods.

When the Price of Hot Dogs at the Supermarket Increases,the