Macmillan Learning
Supply and Demand — End of Chapter Problem
In the accompanying supply and demand diagram depicting
the market for hamburgers in your hometown, first shift the
demand curve, given the event described. Then, move the
equilibrium point to its new position. What is the effect on
equilibrium price and quantity?
Event: All hamburger sellers raise the price of their french
fries.
Price per hamburger
Market for Hamburgers
E
S
Equilibrium price
? stays the same.
? increases.
? decreases.
Equilibrium quantity
Quantity of hamburgers
D