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Suppose that both of the events you have just analyzed are partly responsible for the decrease in the price of hamburgers. Based on your analysis of the explanations offered by the two groups of students, how would you figure out which of the possible causes was the dominant cause of the decrease in the price of hamburgers? O If the equilibrium quantity of hamburgers decreases, then the demand shift in the market for hamburgers must have been larger than the supply shift. O If the price decrease was small, then the supply shift in the market for hamburgers must have been larger than the demand shift. O If the equilibrium quantity of hamburgers decreases, then the supply shift in the market for hamburgers must have been larger than the demand shift. O Whichever change occurred first must have been the primary cause of the change in the price of hamburgers.

Suppose that both of the events you have just analyzed are partly responsible for the decrease in the price of hamburgers. Based on your analysis of the explanations offered by the two groups of students, how would you figure out which of the possible causes was the dominant cause of the decrease in the price of hamburgers? O If the equilibrium quantity of hamburgers decreases, then the demand shift in the market for hamburgers must have been larger than the supply shift. O If the price decrease was small, then the supply shift in the market for hamburgers must have been larger than the demand shift. O If the equilibrium quantity of hamburgers decreases, then the supply shift in the market for hamburgers must have been larger than the demand shift. O Whichever change occurred first must have been the primary cause of the change in the price of hamburgers.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I have completed the two supply and demand shifts on the graphs shown in the screenshots. However, I wasn't sure if I made those adjustments correctly. Could you please confirm my accuracy with those charts and explain why they are or are not correct?

 

Additionally, I am having trouble understanding how to solve the multiple choice question at the bottom of the second screenshot. Could you please help me understand why the correct answer is what it is for this question? Thanks!

The second group of students attributes the decrease in the price of hamburgers to the decrease in the price of pizza at local pizza parlors. On the following graph, adjust the supply and demand curves to illustrate the second group's explanation for the decrease in the price of hamburgers. Supply Demand Supply D2 QUANTITY (Hamburgers) Suppose that both of the events you have just analyzed are partly responsible for the decrease in the price of hamburgers. Based on your analysis of groups of studen how would you figure out which of the possible causes was the dominant cause of the the explanations offered by the tw decrease in the price of hamburgers? O If the equilibrium quantity of hamburgers decreases, then the demand shift in the market for hamburgers must have been larger than the supply shift. O If the price decrease was small, then the supply shift in the market for hamburgers must have been larger than the demand shift. O If the equilibrium quantity of hamburgers decreases, then the supply shift in the market for hamburgers must have been larger than the demand shift. O Whichever change occurred first must have been the primary cause of the change in the price of hamburgers. PRICE (Dollars per hamburger)
Transcribed Image Text:The second group of students attributes the decrease in the price of hamburgers to the decrease in the price of pizza at local pizza parlors. On the following graph, adjust the supply and demand curves to illustrate the second group's explanation for the decrease in the price of hamburgers. Supply Demand Supply D2 QUANTITY (Hamburgers) Suppose that both of the events you have just analyzed are partly responsible for the decrease in the price of hamburgers. Based on your analysis of groups of studen how would you figure out which of the possible causes was the dominant cause of the the explanations offered by the tw decrease in the price of hamburgers? O If the equilibrium quantity of hamburgers decreases, then the demand shift in the market for hamburgers must have been larger than the supply shift. O If the price decrease was small, then the supply shift in the market for hamburgers must have been larger than the demand shift. O If the equilibrium quantity of hamburgers decreases, then the supply shift in the market for hamburgers must have been larger than the demand shift. O Whichever change occurred first must have been the primary cause of the change in the price of hamburgers. PRICE (Dollars per hamburger)
15. Another supply and demand puzzle The market price of hamburgers 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 the price of beef, an important ingredient for making hamburgers, has decreased. Other students attribute the decrease in the price of hamburgers to a recent decrease in the price of pizza at local pizza parlors. Everyone agrees that the decrease in the price of pizza was caused by a recent decrease in the price of marinara sauce, which is not generally used in making hamburgers. Assume that burger joints and pizza parlors are entirely separate entities-that is, there aren't places that serve both hamburgers and pizza. The first group of students thinks the decrease in the price of hamburgers is due to the fact that the price of beef, an important ingredient for making hamburgers, has decreased. On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the decrease in the price of hamburgers. 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. S2 Demand Supply Demand QUANTITY (Hamburgers) PRICE (Dollars per hamburger)
Transcribed Image Text:15. Another supply and demand puzzle The market price of hamburgers 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 the price of beef, an important ingredient for making hamburgers, has decreased. Other students attribute the decrease in the price of hamburgers to a recent decrease in the price of pizza at local pizza parlors. Everyone agrees that the decrease in the price of pizza was caused by a recent decrease in the price of marinara sauce, which is not generally used in making hamburgers. Assume that burger joints and pizza parlors are entirely separate entities-that is, there aren't places that serve both hamburgers and pizza. The first group of students thinks the decrease in the price of hamburgers is due to the fact that the price of beef, an important ingredient for making hamburgers, has decreased. On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the decrease in the price of hamburgers. 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. S2 Demand Supply Demand QUANTITY (Hamburgers) PRICE (Dollars per hamburger)
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The curve that depicts the quantities of goods and services being purchased at various levels of price by individuals is known as the demand curve. 

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