Suppose the market price of pizzas 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 a new type of pizza oven allows pizza shops to make a pizza in half the time. Others claim the decrease in the price of pizzas is because of a recent increase in the price of bear. Everyone agras that the increase in the price of beer was caused by a recent increase in the price of grain, which is not generally used in making pizzas. The first group of students claim the decrease in the price of pizzas can be attributed to the fact that a new type of pizza oven allows pizza shops to make a pizza in half the time. On the flowing graph, adjust the supply and demand curves to mustrate the first group's explanation for the decrease in the price of pizzas. 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 (Dolars per pizza QUANTITY (Pizza) Dand Demand Supply The second group of students attributes the decrease in the price of pizzes to the increase in the price of tee
Suppose the market price of pizzas 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 a new type of pizza oven allows pizza shops to make a pizza in half the time. Others claim the decrease in the price of pizzas is because of a recent increase in the price of bear. Everyone agras that the increase in the price of beer was caused by a recent increase in the price of grain, which is not generally used in making pizzas. The first group of students claim the decrease in the price of pizzas can be attributed to the fact that a new type of pizza oven allows pizza shops to make a pizza in half the time. On the flowing graph, adjust the supply and demand curves to mustrate the first group's explanation for the decrease in the price of pizzas. 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 (Dolars per pizza QUANTITY (Pizza) Dand Demand Supply The second group of students attributes the decrease in the price of pizzes to the increase in the price of tee
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose the market price of pizzas 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 a new type of pizza oven allows pizza shops to make a
pizza in half the time. Others claim the decrease in the price of pizzas is because of a recent increase in the price of bear. Everyone agrass that the
increase in the price of beer was caused by a recent increase in the price of grain, which is not generally used in making pizzas.
The first group of students claim the decrease in the price of pizzas can be attributed to the fact that a new type of pizza oven allows pizza shops to
make a pizza in half the time.
On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the decrease in the price of pizzas.
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 pizza
QUANTITY (Pizzas)
S
PRICE (Dollars per pizza)
52
Demand
The second group of students attributes the decrease in the price of pizzas to the increase in the price of beer.
Demard
On the following graph, adjust the supply and demand curves to illustrate the second group's explanation for the decrease in the price of pizzas.
Supply
Supply
D
Demand
Supply
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