Use the graph to answer the following question:

Which scenarios would result in the supply shift for hamburgers as shown in the graph? *Choose 2 answers*

(4 points)
Responses

A devastating tornado wipes out the Midwest cattle production.
A devastating tornado wipes out the Midwest cattle production.

A new hamburger restaurant opens in the area.
A new hamburger restaurant opens in the area.

Farm workers across the country begin to demand $20 an hour minimum wage
Farm workers across the country begin to demand $20 an hour minimum wage

The availability of meat substitutes becomes more widely available.

1 answer

To determine which scenarios would result in a supply shift for hamburgers, we need to consider factors that would affect the supply of hamburger production.

  1. A devastating tornado wipes out the Midwest cattle production: This scenario would decrease the supply of cattle, leading to a reduction in the supply of hamburgers. Therefore, this scenario would result in a leftward shift of the supply curve.

  2. A new hamburger restaurant opens in the area: This would potentially increase the demand for hamburgers but not necessarily shift the supply curve itself. Therefore, it wouldn’t be an appropriate choice for causing a supply shift.

  3. Farm workers across the country begin to demand $20 an hour minimum wage: Higher wages for farm workers could lead to higher production costs for hamburger producers, resulting in a leftward shift of the supply curve due to decreased supply.

  4. The availability of meat substitutes becomes more widely available: This could potentially lead to a decrease in the demand for hamburgers, but it does not directly affect the supply of hamburgers themselves.

Based on the analysis above, the two responses that would result in a supply shift for hamburgers are:

  • A devastating tornado wipes out the Midwest cattle production.
  • Farm workers across the country begin to demand $20 an hour minimum wage.