Equilibrium price and equilibrium quantity for hot dogs

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Reference no: EM13889067

Ketchup is a complement (as well as a condiment) for hot dogs

a. If the price of ketchup decreases, using a supply and demand diagrams for hot dogs, show what happens to equilibrium price, equilibrium quantity for hot dogs, and total revenue for producers of hot dogs.

b. Using supply/demand diagram, show what happens to consumer surplus, producer surplus and total surplus for hot dogs as a result of the decrease in the price of ketchup. [You can use the diagram in part (a) as well]

Reference no: EM13889067

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