Considering the demand for hotdogs, the number/amount of consumers/income, and the substitution of pretzels, what would cause a movement along the demand curve and what would cause a shift of the...

Considering the demand for hotdogs, the number/amount of consumers/income, and the substitution of pretzels, what would cause a movement along the demand curve and what would cause a shift of the demand curve for hotdogs?

Asked on by mavimalik

1 Answer | Add Yours

justaguide's profile pic

justaguide | College Teacher | (Level 2) Distinguished Educator

Posted on

For most products, the quantity demanded by customers of the product for a particular price is inversely proportional to the price of the product. As the price increases customers buy a smaller quantity and the quantity bought increases as the price decreases. This causes a movement along the same demand curve. There are many other factors that lead to a shift in the demand curve itself, examples of which are the total demand, the income of customers, a change in preference, a change in the availability of substitutes, etc.

The quantity demanded of hotdogs is influenced by a change in price of hotdogs, it follows the inverse ratio described earlier. Only this is responsible for a movement along the demand curve. The other two factors lead to the creation of a new demand curve.

in the second case, the demand curve shifts with the change in the price of salted pretzels that are a substitute for hot dogs and a change in consumers' income.

We’ve answered 318,915 questions. We can answer yours, too.

Ask a question