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MARTINEZ, ALTHEA E. BSAIS 1-A (LESSON 2 - Activity # 3)

1. New grilling technology cuts production time in half, increasing supply by shifting the supply curve to the right, decreasing price and increasing quantity. 2. Price of chicken sandwiches (a substitute) increases, increasing demand by shifting the demand curve to the right, increasing both price and quantity of hamburgers. 3. Price of hamburgers decreases, not shifting the curves but moving along them - quantity demanded increases while quantity supplied decreases, potentially causing a shortage.

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Althea Escarpe Martinez
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100 views3 pages

MARTINEZ, ALTHEA E. BSAIS 1-A (LESSON 2 - Activity # 3)

1. New grilling technology cuts production time in half, increasing supply by shifting the supply curve to the right, decreasing price and increasing quantity. 2. Price of chicken sandwiches (a substitute) increases, increasing demand by shifting the demand curve to the right, increasing both price and quantity of hamburgers. 3. Price of hamburgers decreases, not shifting the curves but moving along them - quantity demanded increases while quantity supplied decreases, potentially causing a shortage.

Uploaded by

Althea Escarpe Martinez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1

Name: Althea E. Martinez Score: ______________


Course/Yr. /Sec.: BSAIS 1-A Date: September 27, 2021

Task/Activity 3

Analyse and explain the effect of the following transactions to the demand and supply curve of
hamburgers. Indicate whether the demand or the supply, increases or decreases, and explain why?

1. New grilling technology cuts production time in half


Price
S
S1

Pe P decrease
Q increase
P1
D

Qe Q1 Quantity

This would likely cause the supply to shift to the right or increase. So how did I say supply? It is
because the technology can increase the production of their hamburgers and as what I have said the
technology will shift the supply curve to the right and it will show that the price will decrease and the
quality itself will increase by the help of the technology in supplying hamburgers.
2. Price of chicken sandwiches (a substitute) increases
Price S

Pe
P increase
P1
D increase
D1

Qe Q1 Quantity

This would cause the demand of hamburgers to increase. It is because the price of
substitute is a shift to demand and chicken sandwiches are more expensive than hamburgers. That’s
why people will buy more hamburgers so the demand will shift to the right and the price goes up and
also the quantity goes up.
3. Price of hamburgers decreases

Price
S Shortage

Pe Qd increase

Qs decrease

P1

Qs Qe Qd Quantity
This would not cause any shift to
the demand and supply curve. It is because the change in price never shift the curve
and it just move along with it’s the curve. So, if the price of hamburgers decreases, the quantity
demanded increases and the quantity supply decreases. That’s why it would leads to a shortage

4. Price of ground beef triples

S1
Price
S
P increase
Pe
Q decrease

P1

Q1 Qe Quantity

At this point it would only cause supply to shift to the left or decrease. Because the price of
ground beef or the main key resource of hamburgers increases. And that’s leads to less hamburgers
will produce. The price will go up and quantity will simply go down.

5. Human fingers found in multiple burger restaurant


Price
S
P decrease

Q decrease
Pe

P1

D
D1

Q1 Qe Quantity

This would cause the demand of hamburgers to decrease. And that’s why the demand curve will
shift to the left, price goes down and quantity goes down

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