Another supply and demand purzle Suppose the market price of calzones in a university town recently decreased. Economics students studying at the university are discussing potential causes of the price decrease. One group of students theorize that the price decreased because the price of dough, an important ingredient for making calzones, has decreased. Others caim the decrease in the price of calzones is because of 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 claim the decrease in the price of calzones can be attributed to the fact that the price of dough, an important ingredient for making calzones, has decreased. On the following graph, adjust the supply and demand curves to iustrate the first group's explanatian for the decrease in the price of catrones. 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 shaps back. to its original position, just drag it a littie farther
Another supply and demand purzle Suppose the market price of calzones in a university town recently decreased. Economics students studying at the university are discussing potential causes of the price decrease. One group of students theorize that the price decreased because the price of dough, an important ingredient for making calzones, has decreased. Others caim the decrease in the price of calzones is because of 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 claim the decrease in the price of calzones can be attributed to the fact that the price of dough, an important ingredient for making calzones, has decreased. On the following graph, adjust the supply and demand curves to iustrate the first group's explanatian for the decrease in the price of catrones. 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 shaps back. to its original position, just drag it a littie farther
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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15. Another supply and demand purzle Suppose the market price of calzones in a university town recently decreased. Economics students studying at the university are discussing potential causes of the price decrease. One group of students theorize that the price decreased because the price of dough, an important ingredient for making calzones, has decreased. Others caim the decrease in the price of calzones is because of 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 claim the decrease in the price of calzones can be attributed to the fact that the price of dough, an important ingredient for making calzones, has decreased. On the following graph, adjust the supply and demand curves to iustrate the first group's explanatian for the decrease in the price of catrones. 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 shaps back. to its original position, just drag it a littie farther.
Transcribed Image Text: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.
PRICE (Dollars per calzone)
QUANTITY (Calzones)
Supply
Demand
Demand
Supply
?
The second group 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
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