Question

Consider the demand curve representing the demand for McDonald's Big Mac hamburgers in the United States during the month of February. For each of the events below, indicate whether the event will cause the demand curve to increase (shift to the right), decrease (shift to the left), or to remain the same. Briefly explain your responses. a. Burger King cuts the price of a Whopper from $3.49 to $2.99 b. Because of a shortage of potatoes, the price of French fries increases. c. As part of a federal deregulation initiative, fast-food restaurants are no longer 3. required to post nutrition information including calories per serving in their facilities. d. In the face of continued low unemployment and changing federal personal income tax withholding schedules, average take-home pay in the United States increases by 5 percent beginning February 1.

Answer 1