Assume that people like onions on their hamburgers. If the supply of hamburgers decreases, the demand…
Onions and hamburgers are complements in consumption. Reduced hamburger supply raises its price and reduces hamburger consumption, shifting onion demand downward. The…
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Assume that people like onions on their hamburgers. If the supply of hamburgers decreases, the demand for onions will most likely :
Answer and explanation
Correct answer D
Onions and hamburgers are complements in consumption. Reduced hamburger supply raises its price and reduces hamburger consumption, shifting onion demand downward. The different-goods argument ignores complementarity; the substitutes claim is false; complements imply decreased rather than increased onion demand. (1) remain unchanged because hamburgers and onions are different goods (2) increase because hamburgers and onions are substitutes (3) increase because hamburgers and onions are complements (4) decrease because hamburgers and onions are complements
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UGC NET Economics