ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The given statement is False. Therefore, the demand for hamburgers would fall and that for hot dogs would rise. So the demand curve for hot dogs would shift to the right. So a change in hamburger’s prices would shift the demand curve for hot dogs but would not affect the supply curve of hot dogs.

Detailed explanation-2: -Answer and Explanation: a. An increase in the price of hamburgers (ceteris paribus) will reduce the quantity demanded of hamburgers in the city. However, the supply of hamburgers increases with the rise in the price of the good; the supply curve shifts inward.

Detailed explanation-3: -For example, if the price of hamburgers increases, hamburgers will seem more expensive, so consumers will demand fewer hamburgers at that price. This change will only affect quantity demanded at that price, not at all possible prices of hamburgers.)

Detailed explanation-4: -This means the two products are complements. If the price of one of the products increases, it will decrease the demand for the other product since consumers often buy them together. This can be graphically shown as a leftward shift in the demand for the complementary good.