What happens to the supply and demand graph?

Question

decrease in the price of hamburgers is due to the fact that several new burger joints have recently opened in the area. What happens to the supply and demand (horizontal line we have quantity hamburgers and vertical price-dollars per hamburgers

Answer 1

New burger joints=more supply at every price

That means a shift to the right in the supply curve.  The demand curve stays the same, but the supply curve intersects at a lower point.  So the quantity demanded is higher and the price is lower.

Answer 2

The KEY here is to ask yourself who started the ball rolling here: Consumers or Suppliers?

If your answer is the consumer, then it will effect the demand curve. But if your answer is the supplier, then it will impact the supply curve.

Did the consumer do anything first? No! What happened was more burger joints opened. And the consumer didn't make that decision, the burger suppliers did. So it's the suppliers who started the ball rolling.

Therefore, the supply side--supply curve--is being effected in some way. The demand curve is uneffected and stays put.

Now the question becomes: Exactly how is supply being effected? And your two choices here are:

a) A shift in the curve itself--outward or inward

b) Movement along the curve

We can immediately eliminate (b) because movement along the curve is caused by a price change. And suppliers didn't adjust their prices.

So we know there has to be a shift in the supply curve itself. The question is if it was inward or outward? Well an inward shift is due to something "negative." Did we have anything bad happen? No.

More burger joints opening is a good thing. So supply shifted outward. And what does this do to the equlibrium price? It lowers it!

Answer 3

price has decreased as supply has increased in the form of new burger joints... this would mean a rightward shift in the supply curve as supply has increased as for the demand curve it would cause a downward effect on the curve but not a shift as just the price has decreased not the demand has risen... axes is taken as same as mentioned in the question.