If the price of hotdogs rises, what happens to the market for ketchup? For tomatoes? For tomato juice? And for orange juice?
Answer:
if hotdog price rises, ketchup would see a decrease in sales, depending on how strong the elasticity is. since more tomatoes are available, supply is increased, resulting in a lowered equilibrium price. same case for tomato juice. and since tomato juice is more available and the price is reduced, more suppliers would supply orange juice instead, thus resulting in an increase in OJ supply.
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