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?

Answer 1

The business and popularity could be affected, as a 2-for-1 Hamburger deal Guarantees more food than a hotdog at a more efficient price. it depends on the quality of Andrea's food.

Answer 2

Jeff's hot dog cart will lose clients. People will debate whether they want to get a hot dog or get two burgers for the price of one and many of them who would normally buy hot dogs would now choose burgers. The hot dog would be their opportunity cost and since they would not buy it, Jeff will lose money.