The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1

-If the price of hot dogs were to decrease, which of the following changes would we expect to occur in the hot dog bun market?
A)The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would increase.
B)The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would decrease.
C)The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would increase.
D)The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would decrease.
E)The equilibrium price of hot dog buns would stay the same and the quantity of hot dog buns sold would increase.

Question

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1
 
-If the price of hot dogs were to decrease, which of the following changes would we expect to occur in the hot dog bun market?
A)The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would increase. 
B)The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would decrease. 
C)The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would increase. 
D)The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would decrease. 
E)The equilibrium price of hot dog buns would stay the same and the quantity of hot dog buns sold would increase.

Quizplus · Accepted Answer

When the price of hot dogs decreases, the demand for hot dogs increases, leading to an increase in the demand for complementary goods like hot dog buns. This results in an increase in both the equilibrium price and quantity of hot dog buns.

The Table Given Below Reports the Quantity Demanded of a Good