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Hot dogs and hot dog buns are complementary goods. If the price of hot dogs falls,...

Hot dogs and hot dog buns are complementary goods. If the price of hot dogs falls, explain what is likely to happen to the demand for hot dog buns. Why is this the case?

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Answer #1

In case of complementary good if demand of one good increases demand of other good also increases and if demand of one good falls then demand for other good also falls

if the price of hot dog falls then its demand will rise since the hot dog bun is complementary good to hot dog the demand for hot dog bun will increase .

this is the case because hot dog bun is complementary good to hot dog and hot dog bun is used in making hot dog so when more hot dog is demanded more buns will be required to fulfill hot dog demand and demand for hot dog bun will increase .

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