For consumers, pizza and hamburgers are substitutes. A rise in the price of a pizza causes _ in the equilibrium price of a hamburger and _ in the equilibrium quantity of hamburgers.

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21-09-2022
Business

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For consumers, pizza and hamburgers are substitutes. A rise in the price of a pizza causes _ in the equilibrium price of a hamburger and _ in the equilibrium quantity of hamburgers.

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qwteddy qwteddy · Answer 1 · 2022-09-23T13:14:33-04:00

For consumers, pizza and hamburgers are substitutes. A rise in the price of a pizza causes a rise in the equilibrium price of a hamburger and an increase in the equilibrium quantity of hamburgers.

In microeconomics, two things are considered substitutes if customers may use them for the same purpose. Having more of one thing makes a buyer want less of the other good because they regard both goods as similar or equivalent.

When the price of commodity increases, the demand for its equivalent goods also rises. For example, tea and coffee are substitute commodities. When tea becomes more expensive, consumers begin switching to coffee instead of tea. Demand for a good's equivalent will rise when the price of that good rises, while demand will fall when the price of that good falls.

In the question, as the price of pizza rises, the demand for hamburgers also increases as they are substitute goods.

Learn more about Substitute goods here:

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For consumers, pizza and hamburgers are substitutes. A rise in the price of a pizza causes _____ in the equilibrium price of a hamburger and _____ in the equilibrium quantity of hamburgers.

Answer :

Other Questions

For consumers, pizza and hamburgers are substitutes. A rise in the price of a pizza causes _ in the equilibrium price of a hamburger and _ in the equilibrium quantity of hamburgers.