What outcome for hot dogs and hot dog buns is most likely based on the information above?

A) The demand for hot dogs increases, as well as the demand for hot dog buns.

B) The quantity demanded of hot dogs increases, and the demand for hot dog buns increases.

C) The quantity supplied of hot dogs increases, and the quantity supplied of hot dog buns also increases.

D) The supply of hot dogs increases to match the demand. Demand and supply for hot dog buns remains the same.

Question

Business

Jaqueline Rivera

4 August, 10:48

What outcome for hot dogs and hot dog buns is most likely based on the information above?

A) The demand for hot dogs increases, as well as the demand for hot dog buns.

B) The quantity demanded of hot dogs increases, and the demand for hot dog buns increases.

C) The quantity supplied of hot dogs increases, and the quantity supplied of hot dog buns also increases.

D) The supply of hot dogs increases to match the demand. Demand and supply for hot dog buns remains the same.

+3

Answers (1)

Know the Answer?

Randall Lin · Answer 1

The correct answer is letter "B": The quantity demanded of hot dogs increases, and the demand for hot dog buns increases.

Explanation:

According to the demand theory, as long as the price of a product decreases the quantity demanded increases. The theory explains the relationship between the price and quantity demanded of a good or service within a market. That relationship is said to be inversely proportional.

In that case, if the price of the hot dogs is reduced by half, the quantity demanded is likely to increase. Supplementary goods such as hot dog buns are prone to see an increase in their demand.