The market price of hamburgers in a college town increased recently, and the students in an economics class 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 studen attribute the increase in the price of hamburgers to a recent increase in the price of pizza at local pizza parlors. Everyone agrees that the increase in the price of pizza was caused by a recent increase 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 increase in the price of hamburgers is due to the fact that several burger joints in the area have recently gone out of business. On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the increase 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 bac to its original position, just drag it a little farther. Demand Supply Demand QUANTITY (Hamburgers) The second group of students attributes the increase in the price of hamburgers to the increase in the price of pizza at local pizza parlors. PRICE (Dollars per hamburger)
The market price of hamburgers in a college town increased recently, and the students in an economics class 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 studen attribute the increase in the price of hamburgers to a recent increase in the price of pizza at local pizza parlors. Everyone agrees that the increase in the price of pizza was caused by a recent increase 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 increase in the price of hamburgers is due to the fact that several burger joints in the area have recently gone out of business. On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the increase 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 bac to its original position, just drag it a little farther. Demand Supply Demand QUANTITY (Hamburgers) The second group of students attributes the increase in the price of hamburgers to the increase in the price of pizza at local pizza parlors. PRICE (Dollars per hamburger)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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