Question
please help me with answering the questions for this scenario! Scenario: You go to your favorite burger place. The price of a burger has increased
please help me with answering the questions for this scenario!
Scenario: You go to your favorite burger place. The price of a burger has increased from $5 to $10. You used to buy five (5) burgers per week at $5, but now you don't buy any. Also, the price of a chicken sandwich stays the same. To you, a burger and chicken sandwich are perfect substitutes.
1). How will the increase in the price of a burger affect the purchases of burgers? Will it cause a change in the demand or
quantity demanded?
2). Will it cause a shift in the curve for burgers, or along the curve?
3). How will the increase in the price of a burger affect purchases of chicken sandwiches? Will it cause a shift in the demand or
quantity demanded of chicken sandwiches?
4. Will it cause a shift in the curve or movement along the curve?
5. When prices fall people experience the income effect. Explain how the income affect applied in this situation.
6. Describe how the substitution affect applied in this situation.
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