Question

There are many food carts near Mark’s university. Mark and his friends regularly buy hot dogs from Jeff’s cart. Recently, Andrea opened a business selling two-for-one hamburgers near Jeff’s cart. What will be effect on Jeff’s hot dog cart?

ademand for his hot dogs will increase
supply of for his hot dogs will decrease
supply of his hot dogs will increase
demand for his hotdogs will decrease

Answer 1

Most likely, the demand for his hot dogs will decrease. This is dependent on a lot of factors. Some people may still prefer to eat hot dogs over hamburgers. However, generally when there is a sale of a like product at less the price, the demand of nearby businesses will drop.

Answer 2

Answer: demand for his hotdogs will decrease.

The most likely outcome is that demand for Jeff's hot dogs will decrease. Increased competition tends to bring a drop in demand. Moreover, in this case, Andrea offers a better deal for the price (two-for-one hamburgers). Although other factors may influence the eventual outcome, it is likely that demand for hot dogs will decrease.