00:01
Let's talk about changes in demand or quantity demanded for burger king burgers.
00:05
Now don't forget that the only thing that changes that quantity demanded is going to be a change in the price of that good.
00:14
Anything else is most likely a change in demand.
00:18
Earlier in the chapter, we covered five different variables that affect the demand curve itself.
00:24
So let's take a look at these examples and see how they would change, whether they would change the demand or the quantity demanded.
00:31
A, the price of wendy's hamburger declines.
00:35
Now, wendy's and burger king are substitutes.
00:39
So if the price of the hamburgers decline on wendy's, people are going to move from burger king to wendy's.
00:47
So there's going to be a decrease in the demand curve for burger king.
00:54
B, burger king distributes coupons for $2 off the purchase of a burger.
01:03
Now, this is going to decrease the price of the burger by $2, therefore increasing the quantity demanded, because this goes straight into the price of the burgers.
01:17
See, there is a shortage of potatoes and the price of french fries increases.
01:24
Well, fries and burgers are compliments, right? every time you get a burger, you'd have to have fries on the side.
01:32
But if the price of french fries increases, we're going to buy less french fries.
01:39
And therefore, by connection, we're going to buy less burgers...