Begin by drawing models for the following 4 markets beginning in equilibrium: hot dogs, hamburgers, mustard, and ketchup. Assume that hamburgers and hot dogs are perfect substitutes. Ketchup is a complement for hamburgers and mustard is a complement for hot dogs. A medical study determines that eating hot dogs causes extreme health problems. Show the result of this medical study on the four models you drew. Indicate what happened to the equilibrium price and equilibrium quantity in each market. (Remember to only shift one curve in each market.) Mustard's curve shifts Mustard's equilibrium price goes Mustard's equilibrium quantity goes

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Answer:

Please see image attached.

Mustard's curve shifts Left as demand for this product constrains

Mustard's equilibrium price goes  Down as demand for this product constrains

Mustard's equilibrium quantity goes Down as demand for this product constrains

Keep in mind that Mustard demand is affected negatively for the health study as it’s a complement of hot dogs then less quantity of hot dogs is expected to be consumed as well as less quantity of hot dogs.

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