The market price of cheeseburgers 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 burger joints have recently opened in the area. Other students attribute the decrease in the price of cheeseburgers to a recent decrease in the price of calzones at local pizza parlors. Everyone agrees that the decrease in the price of calzones was caused by a recent decrease in the price of pizza dough, which is not generally used in making cheeseburgers. Assume that burger joints and pizza parlors are entirely separate entities-that is, there aren't places that serve both cheeseburgers and calzones. The first group of students thinks the decrease in the price of cheeseburgers is due to the fact that several new burger joints 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 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 it snaps back to its original position, just drag it a little farther. Supply Demand Supply Demand OUANTITY (Cheeseburgers) PRICE (Dollars per cheeseburger)
The market price of cheeseburgers 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 burger joints have recently opened in the area. Other students attribute the decrease in the price of cheeseburgers to a recent decrease in the price of calzones at local pizza parlors. Everyone agrees that the decrease in the price of calzones was caused by a recent decrease in the price of pizza dough, which is not generally used in making cheeseburgers. Assume that burger joints and pizza parlors are entirely separate entities-that is, there aren't places that serve both cheeseburgers and calzones. The first group of students thinks the decrease in the price of cheeseburgers is due to the fact that several new burger joints 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 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 it snaps back to its original position, just drag it a little farther. Supply Demand Supply Demand OUANTITY (Cheeseburgers) PRICE (Dollars per cheeseburger)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:The market price of cheeseburgers 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 burger joints have recently opened in the area. Other students
attribute the decrease in the price of cheeseburgers to a recent decrease in the price of calzones at local pizza parlors. Everyone agrees that the
decrease in the price of calzones was caused by a recent decrease in the price of pizza dough, which is not generally used in making cheeseburgers.
Assume that burger joints and pizza parlors are entirely separate entities-that is, there aren't places that serve both cheeseburgers and calzones.
The first group of students thinks the decrease in the price of cheeseburgers is due to the fact that several new burger joints 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 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 it snaps back
to its original position, just drag it a little farther.
Supply
Demand
Supply
Demand
QUANTITY (Cheeseburgers)
PRICE (Dollars per cheeseburger)
Transcribed Image Text:On the following graph, adjust the supply and demand curves to illustrate the second group's explanation for the decrease in the price of
cheeseburgers.
Supply
Demand
Supply
Demand
QUANTITY (Cheeseburgers)
Suppose that both of the events you have just analyzed are partly responsible for the decrease 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
decrease in the price of cheeseburgers?
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 If the equilibrium quantity of cheeseburgers increases, then the supply shift in the market for cheeseburgers must have been larger than
MacBook Air
PRICE (Dollars per cheeseburger)
Expert Solution
Step 1
NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question specifying the one you’d like answered. And the second question is incomplete.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education