Question

Price (dollars per pound) Price dollars per pound) Quantity tons of hamburger] Quantity tons of hamburger) Figure A Figure B Price (dollars per pound) Price (dollars per pound) Quantity lions of homburger) Quantity tons of hamburger) Figure C Figure D 1)- The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed? Figure 2)- The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a substitute like hot dogs? Figure 3)-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a nation-wide strike by butchers and meat-packers? Figure

Answer 1

1.

Answer: A

This will increase demand, since consumption is healthier.

This will shift the demand curve to right-hand direction as by shifting D1 to D2.

2.

Answer: B

This will decrease demand, since the dropping-down of price of a substitute makes this product costlier. Consumers will shift to that substitute good.

This will decrease the demand of this product; demand curve should shift to the left-hand direction.

3.

Answer: C

This will create fall of supply, since few workers are in strike. The supply curve should shift to the left-hand direction.