If the price of beef rises significantly, what will happen in the market for fast-food hamburgers assuming nothing else happens in the market?Supply increases, pushing prices lower.Supply decreases, pushing prices higher.Supply decreases, pushing prices lower.Supply increases, pushing prices higher.

Question
Asked Aug 28, 2019
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If the price of beef rises significantly, what will happen in the market for fast-food hamburgers assuming nothing else happens in the market?

Supply increases, pushing prices lower.
Supply decreases, pushing prices higher.
Supply decreases, pushing prices lower.
Supply increases, pushing prices higher.
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Expert Answer

Step 1

Beef is one the important input that is used for producing fast-food hamburgers; therefore, as the price of beef rises then it makes the fast-food hamburgers costlier as the cost of producing fast-food hamburgers rises. Hence, as a result, the supply for fast-food hamburgers will decrease which tends to increase the price of fast-food hamburgers in the market.

Step 2

This effect can be depicted f...

SS
DD
QUARUTTY OF
HAMBURGERS
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SS DD QUARUTTY OF HAMBURGERS

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