6. Will each of the following events result in a movement along the demand curve or a shift (left or right?) of the demand curve for McDonald’s Big Mac hamburgers?
a. The price of Burger King’s Whopper hamburger declines.
b. McDonald’s distributes coupons for $1.00 off the purchase of a Big Mac
c. Because of a shortage of potatoes, the price of French fries increases
d. Fast-food restaurants post nutrition warning labels
e. The U.S. economy enters a period of rapid growth in incomes.
ANSWER:
1) Demand for mcdonald big mac hamburgers will decrease as burger king is a substitute. (left)
2) A movement along the demand curve for mcdonald big mac . (right)
3) Demand decreases for big mac burgers. (left) as they are complements.
4) demand decreases for big mac burgers as they will eat healthier food. (left)
5) demand will decrease as if it is a inferiror good. (left) and demand will increase if it is a normal good (right)
6. Will each of the following events result in a movement along the demand curve or...
State whether each of the following events will result in a movement along the demand curve for McDonald's Big Mac hamburgers or whether it will cause the curve to 1.9 shift. If the demand curve shifts, indicate whether it will shift to the left or to the right and draw a graph to illus- trate the shift. a. The price of Burger King's Whopper hamburger declines. b. McDonald's distributes coupons for $1.00 off the pur- chase of a Big Mac....
State whether each of the following events will result in a movement along the demand curve for Burger King’s chicken-burger in Halifax or whether it will cause the demand curve to shift either to the right or to the left. Support your argument by drawing a graph to illustrate the shift. 1.1 The price of Burger King’s chicken burger declines. 1.2 The Nova Scotia economy enters a period of rapid growth in incomes. 1.3 A&W claims that they serve beef...
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...