-The above figures show the market for hamburger meat. Which figure shows the effect of a decrease in the price of a substitute like hot dogs?

Question

Quizplus · Accepted Answer

Figure B illustrates an increase in demand for hamburger meat, which would be consistent with a decrease in the price of a substitute like hot dogs. When hot dogs become cheaper, some consumers might switch to buying more hot dogs, reducing the demand for hamburger meat. However, the question asks for the effect on hamburger meat when the price of hot dogs decreases, which would actually make hamburger meat more attractive relative to hot dogs, increasing its demand. Hence, Figure B, showing a rightward shift in the demand curve, correctly represents this scenario.

-The Above Figures Show the Market for Hamburger Meat