Question

There are many food carts near Mark’s university. Mark and his friends regularly buy hot dogs from Jeff’s cart. Recently, Andrea opened a business selling two-for-one hamburgers near Jeff’s cart. What will be effect on Jeff’s hot dog cart?

A. demand for his hot dogs will increase
B. supply of for his hot dogs will decrease
C. supply of his hot dogs will increase
D. demand for his hotdogs will decrease

Answer 1

Since there now is a second store, the customers will need to be shared. This means that there are less customers in Jeff's business. Therefore the answer is D: demand for his hotdogs will decrease.