ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It increases
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It decreases
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Either A or B
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None of the above
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Detailed explanation-1: -If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.
Detailed explanation-2: -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-3: -Demand for hamburgers rises when the price of a substitute good (such as hot dogs) rises. This is evident by the fact that buyers purchase substitute goods at a lower cost.
Detailed explanation-4: -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-5: -Which of the following would tend to increase the supply of Buffalo Burgers? An increase in the price of Buffalo Burgers.