hot dogs and burgers are substitutes. if the price of a hot dog decreases, how does the demand for burgers…
hot dogs and burgers are substitutes. if the price of a hot dog decreases, how does the demand for burgers change? if the price of a hot dog decreases, the demand for burgers will _______. a. decrease, and the demand curve for burgers will shift leftward b. increase or decrease, but the demand for hot dogs will not change c. not change, but there will be a movement along the demand curve for burgers d. increase, and the demand curve for burgers will shift rightward
Answer
Brief Explanations:
When two goods are substitutes, a decrease in the price of one good makes it more attractive relative to the other. Consumers will shift their purchases towards the cheaper substitute. So, when the price of hot - dogs (a substitute for burgers) decreases, consumers will buy more hot - dogs and less burgers. This causes the demand for burgers to decrease, which is represented by a leftward shift of the demand curve for burgers.
Answer:
A. decrease, and the demand curve for burgers will shift leftward