Q. McDonald hamburgers have become the new fast food of choice for young affluent Asians. How will this event impact the market?
If McDonald hamburgers become the new fast food of choice for young affluent Asians, the demand curve will increase and will shift to the right. In other words, the amount that a consumer is willing to buy will increase. This shift in demand curve will affect the equilibrium, the point at which all products are sold, as well because now people want more McDonald hamburgers and so the equilibrium point will shift up along the supply curve as shown in figure 1. So therefore, if McDonald hamburgers become the new fast food of choice for young Asians, there would be an increase in the demand curve and the equilibrium point would also increase. Figure 1 describes this by shifting the points Q1 to Q2 as shown in the shift in demand curve from D1 to D2 and by showing that the equilibrium point shifted from P1 and P2 to P3, and from Q1 to Q3. So therefore the price has increased, and the quantity as decreased.