Answer to Question #130969 in Microeconomics for Dhanush

Question

a consumer buys either burgers or hot dog and does not prefer one over the other. given in market. for burger, an increase in the price of hot dogs will cause the demand curve for burger shift to the left

Answer 1

False. The demand curve would shift to the right. Hot dogs and burgers are substitute products,if the price of hot dogs increases ,the demand of burger also increase as consumers switch from hot dogs to burgers to maintain their budget.