Question

Suppose that the price of beef rises significantly. what happens in the market for fast-food hamburgers?

Answer 1

The correct answer is: The demand quantity for beef hamburgers decreases.

Step-by-step explanation:

As beef is the main ingredient of beef hamburgers, the changes in the price of beef will affect the fast-food hamburgers market. According to the demand theory, if prices rise the quantity demanded falls. Thus, if the price of beef goes up, the quantity demanded for beef hamburgers will drop. Businessmen are likely to look for substitutes -if any, in front of this situation.

Answer 2

If the price of beef arises significantly, the fast-food hamburgers quantity supply will increase. The reason is Demand Increase: as the price increases, the quantity supply increases. After demand and supply changed, the consumer and seller will negotiate deals after it is adjusted.