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2 years ago

Suppose pizzas and burgers are substitutes. if the price of pizza increases, what happens in each market?

1 answer:

8 0

If the price of pizza increases, Move upward and to the left along the demand curve for pizzas and the demand curve for burgers shifts to the right.

<h3>What is Demand curve?</h3>

A demand curve is a graph that shows the relationship between the cost of a given good and the amount that is desired at that cost. Demand curves can be applied to the price-quantity connection for either a specific consumer or for every consumer in a given market.

The relationship between the cost of an item or service and the quantity demanded over a specific time period is represented graphically by the demand curve. The price and quantity demanded are often represented with the price on the left vertical axis and the horizontal axis, respectively.

Pizzas and burgers exist as substitutes. This implies that they are utilized in place of each other. If the price of pizza increases, the quantity demanded will decrease. This will be characterized by an upward movement to the left on the same demand curve.

Consumers will prefer a more affordable substitute, and as a result, the demand for burgers will increase. This will be displayed by a rightward shift in the demand curve for burgers..

Hence, if the price of pizza increases, Move upward and to the left along the demand curve for pizzas and the demand curve for burgers shifts to the right.

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