Question

Harry loves both hot dogs and hamburgers. He receives about the same satisfaction from eating one hamburger as he does from eating one hot​ dog, and the two goods fill the same need in​ Harry's life. The price of hot dogs has been extremely volatile for the past several​ years, and this year is no exception. Hot dog prices tremendously this month. Assuming hot dogs and hamburgers are substitutes for​ Harry, what will happen to​ Harry's demand for​ hamburgers?
Required:
Using the line drawing​ tool, depict the effect on​ Harry's demand for hamburgers due to the in the price of hot dogs. Properly label this line. Carefully follow the instructions above and only draw the required object.

Answer 1

Answer: Harry's demand for​ hamburgers will increase.

Explanation:

Substitutes are goods that can be used to replace one another because they both serve thesame purpose. In this case, hot dogs and hamburgers are substitutes.

Since the price of hotdogs has risen, Harry will reduce its demand for hotdogs and shift its demand to buying more hamburger. This means Harry's demand for​ hamburgers will increase.