💬 👋 We’re always here. Join our Discord to connect with other students 24/7, any time, night or day.Join Here!
Get the answer to your homework problem.
Try Numerade free for 7 days
Like
Report
Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increasesand the price of a complement good (for example, hamburger buns) increases, can you tell for sure whatwill happen to the demand for hamburgers? Why or why not? Illustrate your answer with a graph.
No. Demand for hamburgers can either increase or decrease or remain fixed.
02:03
Jiapeng G.
No Related Courses
Chapter 3
Demand and Supply
Introduction
How Markets Work
Markets and Welfare
Jennifer I.
November 30, 2020
05:43
Draw a supply and demand g…
01:40
We know that a change in t…
02:30
A change in which of the f…
02:49
If, over time, the demand …
03:19
State whether each of the …
02:26
Draw a demand and supply g…
04:47
Draw supply-and-demand dia…
02:17
What is the difference bet…
02:09
The following graph illust…
01:55
What is the law of demand?…
03:03
Discuss, and illustrate wi…
00:53
Consumer Demand When the p…
02:16
02:34
The law of supply and dema…
01:04
Retail businesses strive t…
00:18
Use the graph to answer th…
Suppose that in the market…
03:17
The price of coffee rose s…
00:31
07:24
Explain the law of demand.…
Yeah, we cannot tell for sure how the demand for hamburger would change. We have to driven factors here, an increase in the price of both hot dog and buns. Hot dog is a substitute for hamburger. By definition, substitute good is a good that can be used in place of another good. A higher price of the substitute good would increase the demand of other product. In this case, when hot dog becomes more expensive, hamburgers become relatively cheaper compared to hot dog, so the demand for hamburger would increase. Next, we have a new increase in the price of bonds. Bonds and hamburgers are compliments, meaning they're used together. The consumption of one goods enhanced the consumption of the other good and vice versa. When the price of buns increase, Yeah, the consumption of buns would be, um, reduced. And so is the demand for hamburger. Yeah, we have to conduct contradictory forces at play here, so which force is stronger with determine? The change in the demand for hamburger is the force from the price of hot dog is stronger. We would see an increase in the demand for hamburger, But if once price is a stronger player. Then we would see a degrees in the demand for hamburger. And if the two forces are equivalent, then no change happen for the demand of hamburger.
View More Answers From This Book
Find Another Textbook
Draw a supply and demand graph and identify the areas of consumer surplus an…
We know that a change in the price of a product causes a movement along the …
A change in which of the following will NOT shift thedemand curve for ha…
If, over time, the demand curve for a product shifts to the right more than …
State whether each of the following events will result in a movement along t…
Draw a demand and supply graph to show the effect on the cquilibrium price i…
Draw supply-and-demand diagrams for market $A$ for each of the following. Th…
What is the difference between the demand and the quantity demanded of a pro…
The following graph illustrates the law of supply and demand.a. Complete…
What is the law of demand? Use the substitution effect and the income effect…
Discuss, and illustrate with a graph, how each of the following events, cete…
Consumer Demand When the price of an essential commodity rises rapidly, cons…
The law of supply and demand states that, in a free market economy, a commod…
Retail businesses strive to price their products so that they sell as many a…
Use the graph to answer the questions.When $x>40,$ does demand exceed…
Suppose that in the market for U.S. meat packers, two things happen simultan…
The price of coffee rose sharply last month, while the quantity sold remaine…
Use the graph to answer the questions.At what value of $x$ does supply e…
Explain the law of demand. Why does a demand curve slope downward? How is a …
01:10
Describe the general appearance of a demand or a supply curve with zero elas…
03:00
What assumptions does the model of intertemporal choice make that are not li…
01:48
Explain why voluntary transactions improve social welfare.
01:58
Economists define normal goods as having a positive income elasticity. We ca…
01:33
What causes a movement along the demand curve?What causes a movement alo…
02:19
Are households primarily buyers or sellers in the goods and services market?…
00:32
Are firms primarily buyers or sellers in the goods and services market? In t…
04:59
In an analysis of the market for paint, an economist discovers the facts lis…
Which of the following changes in the financial market will lead to a declin…
02:53
Name some factors that can cause a shift in the demand curve in labor market…
