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?


demand for his hot dogs will increase



supply of for his hot dogs will decrease



supply of his hot dogs will increase



demand for his hotdogs will decrease

Answer 1

The answer is D

Nobody s supplies will change so C and B are out of the question D and someone pitching a great deal will decrease the demand for the hot dog stand.

Answer 2

Answer:

demand for his hotdogs will decrease

Explanation:

Assuming that hot dogs and hamburgers are substitute products for each other, the entry of the hamburger cart will stipulate a competition for the hot dog. This way, part of the consumers who only had the hot dog option will demand a hamburger. Consequently the demand for hot dogs tends to decrease.