Please make it as clear as possible 15. Another supply and demand puzzleThe market price of calzones in a college town decreased recently, and the students in an economics class are debating the cause of the pricedecrease. Some students suggest that the price decreased because several new pizza parlors have recently opened in the area. Other studentsattribute the decrease in the price of calzones to a recent increase in the price of beer. Everyone agrees that the increase in the price of beer wascaused by a recent increase in the price of hops, which are not generally used in making calzones.The first group of students thinks the decrease in the price of calzones is due to the fact that several new pizza parlors have recently opened in thearea.On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the decrease in the price of calzones.Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps backto its original position, just drag it a little farther.(?SupplyDemandSupplyDemandQUANTITY (Calzones)PRICE (Dollars per calz one) The second qroup of students attributes the decrease in the price of calzones to the increase in the price of beer,On the following graph, adjust the supply and demand curves to illustrate the second group's explanation for the decrease in the price of calzones.(?)SupplyDemandSupplyDemandQUANTITY (Calzones)Suppose that both of the events you have just analyzed are partly responsible for the decrease in the price of calzones. Based on your analysis of theexplanations offered by the two groups of students, how would you figure out which of the possible causes was the dominant cause of the decrease inthe price of calzones?O If the equilibrium quantity of calzones decreases, then the supply shift in the market for calzones must have been larger than the demandshift.O If the price decrease was small, then the supply shift in the market for calzones must have been larger than the demand shift.O If the equilibrium quantity of calzones decreases, then the demand shift in the market for calzones must have been larger than the supplyshift.O Whichever change occurred first must have been the primary cause of the change in the price of calzones.PRICE (Dollars per calz one)

Equilibrium in the market occurs where quantity demanded equals quantity supplied, that is at the…

15. Another supply and demand puzzle The market price of calzones in a college town decreased recently, and the students in an economics class are debating the cause of the price decrease. Some students suggest that the price decreased because several new pizza parlors have recently opened in the area. Other students attribute the decrease in the price of calzones to a recent increase in the price of beer. Everyone agrees that the increase in the price of beer was caused by a recent increase in the price of hops, which are not generally used in making calzones. The first group of students thinks the decrease in the price of calzones is due to the fact that several new pizza parlors have recently opened in the area. On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the decrease in the price of calzones. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. (? Supply Demand Supply Demand QUANTITY (Calzones) PRICE (Dollars per calz one)

15. Another supply and demand puzzle The market price of calzones in a college town decreased recently, and the students in an economics class are debating the cause of the price decrease. Some students suggest that the price decreased because several new pizza parlors have recently opened in the area. Other students attribute the decrease in the price of calzones to a recent increase in the price of beer. Everyone agrees that the increase in the price of beer was caused by a recent increase in the price of hops, which are not generally used in making calzones. The first group of students thinks the decrease in the price of calzones is due to the fact that several new pizza parlors have recently opened in the area. On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the decrease in the price of calzones. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. (? Supply Demand Supply Demand QUANTITY (Calzones) PRICE (Dollars per calz one)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

What couses immigration
How you will convert your money into specific crypto?
Is Social Security expected to be around when you retire? Write a paragraph of at least 100 words explaining why or why not.
Legal and Ethical Behavior in the Philippines
Where does Mark Dean call home?
Evaluate safety and security affecting early childhood development in Jamaica. Use references.
How to imorove quality education in the Philippines
Describe the Emergencies Act. Why was it most recently used?
What are criminal prosecutions?
Why it’s important to know about corona?
Do you know who are Millennials or Generation Y? Search and read about this generation. Also find out about Generation Z. Are you aware of the career stages that employees pass through? Do you know what career stage you will be in when you start your first job? Do you know what your main concerns will be in that stage?
Please help to solve this problem.