Soda and hot dogs are complements for one another.If a shortage of carbonated water leads to an increase in the price of soda,then the
A) demand for hot dogs increases.
B) demand for hot dogs decreases.
C) quantity of hot dogs demanded increases.
D) quantity of hot dogs demanded decreases.
E) More information is needed to determine if the demand increases or decreases.

Question

Quizplus · Accepted Answer

If the price of soda increases due to a shortage of carbonated water, people will likely reduce their consumption of soda. As soda and hot dogs are complements, the decrease in demand for soda will lead to a decrease in demand for hot dogs as well. Therefore, the demand for hot dogs will decrease.

Soda and Hot Dogs Are Complements for One Another