There are 1,000 hot dog stands in Chicago at any given moment

Economics Dec 10, 2020

There are 1,000 hot dog stands in Chicago at any given moment. Due to health concerns, a significant number of families move out of the city. Would there be a shift in the demand curve, the supply curve, or both?

Expert Solution

As a significant number of families move out of the town, there would be less demad for hot dogs in the city. Also, due to health concerns, the remaining families would also avoid having hot dogs, because of which the demand for hot dogs would decrease.

The demand curve would shift inwards to the left, the price and the quantity demanded both will decrease.

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