consider that mcds big mac hamburgers are goods. how does and increase in consumers income affect the demandfor mcds big mac hamburgers? if the demand curve shifts, indicate whether it will shift to...

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consider that mcds big mac hamburgers are goods. how does and increase in consumers income affect the demandfor mcds big mac hamburgers? if the demand curve shifts, indicate whether it will shift to the right and draw a graph to illustrate the shift. label graph appropriately.
Answered Same DayDec 20, 2021

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David answered on Dec 20 2021
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Q1consider that mcds big mac hamburgers are goods
Q1consider that mcds big mac hamburgers are goods. how does and increase in consumers income affect the demandfor mcds big mac hamburgers? if the demand curve shifts, indicate whether it will shift to the right and draw a graph to illustrate the shift. label graph appropriately.
As consumer’s money income increases, they will buy more hamburgers without any change in price. So, demand for hamburgers increases and the demand curve shifts outward from Do to D’.
Q2- What happen to the demand of hotdogs wen the following changed occur in the hotdog market? state whether there will be increase or decrease of quantity demanded or demand of the hotdogs.
a-the price of the hotdogs increases
In this case, there will be decrease in quantity demand of hotdogs and consumer will buy lower amount of hotdogs following increase in price.
-the pice of ketchup, which is a complement good increases.
As ketchup and hot dogs are complimentary to each other, they are consumed together. So, as price of ketchup increases, there will be decrease in demand for hot dogs and demand curve...
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