Question

If hot dogs decrease in price, what will happen to the demand for hot dog buns?

O It will increase, due to a change in consumer income
O It will decrease, due to a change in consumer expectations
It will increase, due to a change in the price of a complement good

Answer 1

Option 3
It will decrease, due to a change in consumer expectations.

This is because when the price of a complementary good such as hot dog increases there would not be a need for hot dog buns. Hence the demand for hot dog buns will decrease.