Question

Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. When he arrived, he discovered that hamburgers were on sale for $1 each, so Steve bought two hamburgers and a soda. Steve's response to the decrease in the price of hamburgers is best explained by:

Answer 1

Answer:

the decrease in price increase the demand.

Explanation:

Steve is a consumer of goods, his demand will increase if the price drops. In this case, the hamburgers price decrease so it demand increases too.

This makes his consumer surplus increase as well, as he was willing to pay up to $2 per hamburger, receiving 2 at 1 dollar genrate an additional consumer surplus for $2 dollars