What Can Cause an Increase in Demand for Veggie Burgers?

What factors can cause an increase in demand for veggie burgers?

a. A decline in the price of veggie burgers.
b. An increase in the price of tofu burgers, perceived as a substitute by veggie burger consumers.
c. An increase in the price of burger buns.
d. A technological innovation that lowers the cost of producing veggie burgers.

Final Answer:

An increase in the price of tofu burgers, perceived as a substitute by veggie burger consumers would likely increase demand for veggie burgers.

Explanation:

The factors that can cause an increase in demand for veggie burgers include both price and non-price factors. Of the options provided, b. An increase in the price of tofu burgers, perceived as a substitute by veggie burger consumers, would be the most likely to increase demand for veggie burgers. This phenomenon is related to the substitution effect, which refers to the tendency of consumers to switch to a cheaper product when the price of a substitute rises. Conversely, the other three options would likely not result in an increase in demand. Lowering the price of veggie burgers (option a) would result in a movement along the demand curve, but not a shift. An increase in the price of burger buns (option c) could reduce the demand for veggie burgers because they are often consumed together. Technological innovation that lowers production costs (option d) could decrease the price of veggie burgers, which may increase quantity demanded but would not in itself shift the demand curve.