Reviewing An Econ 101 Assignment

here is the file you need to review and also make sure to tell me to shift or move the supply or demand curves if necessary and make  sure to focus this time

 

The market price of pizzas 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 the price of dough, an important ingredient for making pizzas, has increased. Other students attribute the increase in the price of pizzas to a recent decrease in the price of beer.

 

Everyone agrees that the decrease in the price of beer was caused by a recent decrease in the price of hops, which is not generally used in making pizzas.

 

The first group of students thinks the reason for the increase in the price of pizzas is that the price of dough, an important ingredient for making pizzas, has increased.

 

On the following graph, adjust the supply and demand curves to illustrate the first group’s explanation for the increase 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.

 

The second group of students attributes the increase in the price of pizzas to the decrease in the price of beer.

On the following graph, adjust the supply and demand curves to illustrate the second group’s explanation for the increase in the price of pizzas.

 

 

 

 

Suppose that both of the causes suggested by the students are partly responsible for the increase in the price of pizzas. Based on your analysis of the explanations offered by the two groups of students, how would you figure out which of the possible causes is the dominant cause of the increase in the price of pizzas?

A. If the price increase was small, then the supply shift in the market for pizzas must have been larger than the demand shift.

B. If the equilibrium quantity of pizzas increases, then the demand shift in the market for pizzas must have been larger than the supply shift.

C. If the equilibrium quantity of pizzas increases, then the supply shift in the market for pizzas must have been larger than the demand shift.

D. Whichever change occurred first must have been the primary cause of the change in the price of pizzas.