Answer to Question #212531 in Microeconomics for Darlene

Question

what is the effect on the market price and output of hamburgers with reference to the following

a)widespread of beef

b)dramatic improvement in fast food technology

Answer 1

a) Widespread of beef would increase the supply of beef and market price will fall to a higher equilibrium quantity and lower equilibrium price of hamburgers.

b) Dramatic improvement of technology would reduce the cost of production, increase production output, consequently resulting in low market prices of hamburgers.