ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The relationship between hot dogs and hot dog buns is that both are complementary goods. The goods that are demanded together are called compliment goods, and an increase in the price of one good leads to a decrease in the demand for the other.

Detailed explanation-2: -Answer and Explanation: This option is correct because complementary goods are those goods that show that as the price of hot dogs falls then the demand for hot dog burns will increase. It means as the demand for hot dog burns rises then the price and quantity of hot dog burns also rises.

Detailed explanation-3: -When the price of hot dogs decreases, people demand more hot dogs. To manufacture hot dogs, more hot dog buns are required. So, the demand for hot dog buns increases. This increases the price and quantity of hot dog buns.

Detailed explanation-4: -Complementary goods are products which are bought and used together. A fall in the price of Good X will lead to an expansion in quantity demand for X. And this might then lead to higher demand for the complement Good Y. Complements are said to be in joint demand.