Question

John owns a number of hot dog stands in New York City. He hires workers to sell hot dogs at his stands. Which of the following events will lead to a decrease in John's demand for hot dog vendors?a. Hollywood glamorization of a new movie about a hot dog vendor leads hundreds of high-school students in New York City to apply for a job at John's.b. The price of hot dogs falls.c. The local hot dog vendors form a union increasing hot dog vendor wages.d. The demand curve for hot dogs shifts to the right.

Answer 1

Answer:

The correct answer is option b.

Explanation:

John owns hot dog stands that sell hot dogs in New York City. He employs vendors to sell hot dogs at these stands.

A decrease in the price of hot dogs will reduce the revenue and profits earned by John. So John will hire fewer workers for his stands to reduce costs.

This will cause John's demand for hot dog vendors to decline.