(This relates seemingly disparate topics across this course.We will combine the idea of complementary goods with demand shifts, and see how the subsequent price changes cause different production decisions in the market for the complementary good.)

It turns out that the producer was making hot dogs and the price of hot dog buns has skyrocketed.Due to an increase in price of this complementary good, demand for hot dogs has fallen.With the new demand curve, the equilibrium price for a package of hot dogs has fallen to $12.Given this new information and the previous information in problem #2, how many packages of hot dogs (i.e. units of output) will be made in this case?Assume it is a perfectly competitive market.

15 packages of hot dogs will be made

https://www.coursehero.com/qa/attachment/14998247/

1.Using the information in problem #9, draw the supply and demand curve (and subsequent shift) for hot dogs below.Label the axes and the new and old equilibria.

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