Answer to Question #238467 in Microeconomics for Daniel

Question

Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, what happens to the market for ketchup? For tomatoes? For tomato juice? For orange juice? 

Answer 1

When the price for hot dogs rises, this means that the complement will experience reduction in demand. This comes as the price rise may have affected the money that could be used in purchasing hot dogs. Market for tomato and orange juice will reduce as the increased price of hot dogs may force people to shift from the product.