analyze what happens to the market for cheeseburgers if the price of cheese rises (cheese being apart of the cost for a cheeseburger) . Be specific and explain what happens ( or is not affected) for each of the following:
1. the supply curve
2. the quantity supplied
3.the demand curve
4. the quantity demanded
5.the price
1. The supply curve: When the price of cheese rises, it directly affects the cost of producing a cheeseburger. Since cheese is a major ingredient in a cheeseburger, an increase in the price of cheese will increase the cost of production for cheeseburgers. This, in turn, affects the supply curve for cheeseburgers. The supply curve will shift to the left (decrease) due to higher production costs. Suppliers will be less willing or able to supply the same quantity of cheeseburgers at each price level.
2. The quantity supplied: The increase in the price of cheese will lead to a decrease in the quantity supplied of cheeseburgers. This is because the higher cost of cheese will reduce the profit margin for producers. As a result, they will be less inclined to produce and supply the same quantity of cheeseburgers. In other words, the quantity supplied will decrease along the original supply curve.
3. The demand curve: The demand for cheeseburgers, unlike the supply curve, is not directly affected by the price of cheese. The demand curve represents the willingness and ability of consumers to purchase cheeseburgers at different price levels. Since cheese is just one component of a cheeseburger, the price of cheese alone does not significantly impact the overall demand for cheeseburgers. Therefore, the demand curve for cheeseburgers is not directly affected by the increase in the price of cheese.
4. The quantity demanded: Similarly to the demand curve, the quantity demanded of cheeseburgers is not primarily influenced by changes in the price of cheese. Instead, factors such as taste preferences, income, and the price of related goods (e.g., other fast food items) have a greater impact on the quantity demanded. Therefore, the quantity demanded of cheeseburgers will not change significantly due to the increase in the price of cheese.
5. The price: The increase in the price of cheese will affect the price of cheeseburgers to some extent. Since the cost of cheese, a key ingredient, has risen, producers will likely pass on some of that cost to consumers in the form of higher prices. However, as mentioned earlier, the price of cheese alone does not significantly impact the demand for cheeseburgers. Therefore, the increase in the price of cheese will only lead to a slight increase in the price of cheeseburgers, rather than a significant change.