Answer to Question #234548 in Finance for Lee3415

Question

Which of the following would cause the demand curve for beef hamburger to shift to the right? Choose the correct answer. Provide a reason for your correct answer. Also indicate why each of the other answers are incorrect and draw graphs for each indicating how the curves will shift or how there will be movement along a curve. (8)

The correct answer is: (a, b, c or d) ________________


a) A decline in the price of cattle feed

Insert graph here



b) A rise in the price of pork

Insert graph here




c) A decline in the price of hamburger

Insert graph here




d) A decrease in income

Insert graph here


State why each question is wrong and each graph

Answer 1

The correct answer is b) A rise in the price of pork.

This is because pork is a substitute good for beef hamburgers and when its price increases, people will substitute it for the beef hamburger. Therefore, this will increase the demand for beef hamburgers, hence causing the demand curve to shift to the right.

 

This is displayed by the below graph: