Suppose that both of the vents you ve just analyzed are partly responsible for the ease in the price of cheeseburgers. 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 increase in the price of cheeseburgers? O I the equilibrium quantity of cheeseburgers increases, then the supply shift in the market for cheeseburgers must have been larger than the demand shift. If the price increase was large, then the supply shift in the market for cheeseburgers must have been larger than the demand shift. O It the equilibrium quantity of cheeseburgers increases, then the demand shift in the market for cheeseburgers must have been larger than the supply shift. O Whichever change occurred first must have been the primary cause of the change in the price of cheeseburgers.
Suppose that both of the vents you ve just analyzed are partly responsible for the ease in the price of cheeseburgers. 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 increase in the price of cheeseburgers? O I the equilibrium quantity of cheeseburgers increases, then the supply shift in the market for cheeseburgers must have been larger than the demand shift. If the price increase was large, then the supply shift in the market for cheeseburgers must have been larger than the demand shift. O It the equilibrium quantity of cheeseburgers increases, then the demand shift in the market for cheeseburgers must have been larger than the supply shift. O Whichever change occurred first must have been the primary cause of the change in the price of cheeseburgers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer all three parts.
Transcribed Image Text:Suppose that both of the events you have just analyzed are partly responsible for the increase in the price of cheeseburgers. 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
increase in the price of cheeseburgers?
If the equilibrium quantity of cheeseburgers increases, then the supply shift in the market for cheeseburgers must have been larger than
the demand shift.
If the price increase was large, then the supply shift in the market for cheeseburgers must have been larger than the demand shift.
O If the equilibrium quantity of cheeseburgers increases, then the demand shift in the market for cheeseburgers must have been larger
than the supply shift.
O Whichever change occurred first must have been the primary cause of the change in the price of cheeseburgers.
Transcribed Image Text:The market price of cheeseburgers in a college town increased recently, and the students in an economics dass are debating the cause of the price
increase. Some students suggest that the price increased because several burger joints in the area have recently gone out of business. Other students
attribute the increase in the price of cheeseburgers to a recent increase in the price of calzones at local pizza parlors.
Everyone agrees that the increase in the price of calzones mas caused by a recent increase in the price of pizza dough, which is not generally used in
making cheeseburgers. Assume that burger joints and pizza parlors are entirely separate entkies-that is, there aren't places that serve both
cheeseburgers and calzones.
The first group of students thinks the increase in the price of cheeseburgers is due to the fact that several burger jaints in the area have recently gone
cut of business.
On the fallowing graat, adjust the supply and demand curves to ilustrate the fiest group's explanation far the increase in the price of cheeseburgers.
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 ik snaps back
to its original position, just drag it a little farther.
Supply
Demard
Supoly
Demand
QUANTITY (Cheesaturgers)
The second group of students attributes the increase in the price of cheeseburgers to the increase in the price of calzones at local pizza parlors.
On the folowing graph, adjust the supply and demand curves to ilustrate the second group's explanation for the increase in the price of
cheeseburgers.
Supply
Demard
Supply
QUANTITY (Cheaburgers)
(antngsp and sngl onid
(antung ad sungl onid
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