Using Hot Dogs GRAPH the market and the individual supply de

Using Hot Dogs, GRAPH the market and the individual supply, demand and costs for Hot dogs side by side.

Make sure to include the S.R. and L.R profits!

Solution

Hot dogs and homburgers are substitute each other so the demand of hot dogs not only depends on price of hot dogs but also the price of homburges .If the price of hot dogs increase humburgers would become a more attrative altrnative. Some consumers originally purchasing hotdogs would instead substitute towards hamburgers.

If the cost is approx $2 of one loaf of dot dogs.the profit will be--

Price of Hot Dogs

Demand

Supply

Cost/per loaf

Profit

$2

$3

$4

$5

$6

$7

$8

$9

$10

$12

20

18

16

14

12

10

8

6

4

2

2

4

6

8

10

12

14

16

18

20

$2

$2

$2

$2

$2

$2

$2

$2

$2

$2

0

1

2

3

4

5

6

7

8

9

Price of Hot Dogs	Demand	Supply	Cost/per loaf	Profit
$2 $3 $4 $5 $6 $7 $8 $9 $10 $12	20 18 16 14 12 10 8 6 4 2	2 4 6 8 10 12 14 16 18 20	$2 $2 $2 $2 $2 $2 $2 $2 $2 $2	0 1 2 3 4 5 6 7 8 9