The following graph shows the market for hot dogs in Chicago, where there are over 1,000 hot dog stands at any given moment. Suppose the municipal government, in an attempt to attract new residents, issues $1,000 move-in vouchers to each new household that moves to Chicago. As a result, many new families move into the city. Show the effect of this change on the market for hot dogs by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.
The following graph shows the market for hot dogs in Chicago, where there are over 1,000 hot dog stands at any given moment. Suppose the municipal government, in an attempt to attract new residents, issues $1,000 move-in vouchers to each new household that moves to Chicago. As a result, many new families move into the city. Show the effect of this change on the market for hot dogs by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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8. Shifts in supply or demand I
The following graph shows the market for hot dogs in Chicago, where there are over 1,000 hot dog stands at any given moment. Suppose the municipal government, in an attempt to attract new residents, issues $1,000 move-in vouchers to each new household that moves to Chicago. As a result, many new families move into the city.
Show the effect of this change on the market for hot dogs by shifting one or both of the curves on the following graph, holding all else constant.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.
Transcribed Image Text:Supply
Demand
Supply
Demand
QUANTITY (Hot dogs)
Now suppose Congress passes a tax cut that increases the income of Chicago residents.
If hot dogs are a normal good, this will cause the demand for hot dogs to
PRICE (Dollars per hot dog)
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