What will likely happen to the demand for Jeff's hot dogs when Andrea opens her hamburger business nearby?

When Andrea opens her hamburger business nearby, it is likely that the demand for Jeff's hot dogs will decrease. This is because both hot dogs and hamburgers serve as substitutes for one another; consumers may choose to buy hamburgers instead of hot dogs, especially if they are being offered in close proximity. When one option becomes more available, such as hamburgers in this scenario, consumers may shift their preference towards that alternative, resulting in a reduction in demand for hot dogs.

The relationship between substitute goods is fundamental in economics. As one product’s availability increases, customers are more likely to switch to that product, which can lead to a decrease in demand for competing goods. Therefore, with Andrea's hamburger business attracting customers, it is reasonable to conclude that fewer people will purchase hot dogs from Jeff, reflecting a decrease in demand for his offerings.