Chapter 3, Problem 2P

To determine

Shift in demand curves in each situations
(a) Shift in demand curve of hamburgers when price of tacos increases.
(b) Shift in demand curve of hamburgers when price increases.
(c) Income falls in town and hamburgers are normal goods.
(d) Income falls in town and hamburgers are inferior goods.
(e) Hot dog stands cut their prices.

Concept Introduction

Demand: The demand of a product or service in the market is derived by the willingness to purchase and ability of the consumer to pay for the purchase.

Supply: The supply of a product or service means making available a specific product or service to the consumers at a specific price.

Equilibrium Price: The equilibrium price is the market price at which the quantity demanded by the consumers equals the quantity supplied by the producers.