Business, 22.07.2020 03:01 rconyers00

The market price of calzones 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 calzones, has increased. Other students attribute the increase in the price of calzones 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 are not generally used in making calzones.
The first group of students thinks the increase in the price of calzones is due to the fact that the price of dough, an important ingredient for making calzones, 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 calzones.
DemandSupplyPRICE (Dollars per calzone)QUANTITY (Calzones)Demand Supply
The second group of students attributes the increase in the price of calzones 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 calzones.
DemandSupplyPRICE (Dollars per calzone)QUANTITY (Calzones)Demand Supply
Suppose that both of the events you have just analyzed are partly responsible for the increase in the price of calzones. 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 calzones?
Whichever change occurred first must have been the primary cause of the change in the price of calzones.
If the equilibrium quantity of calzones decreases, then the supply shift in the market for calzones must have been larger than the demand shift.
If the equilibrium quantity of calzones decreases, then the demand shift in the market for calzones must have been larger than the supply shift.
If the price increase was small, then the supply shift in the market for calzones must have been larger than the demand shift.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:20, derpmuffin47

On february 3, smart company sold merchandise in the amount of $5,800 to truman company, with credit terms of 2/10, n/30. the cost of the items sold is $4,000. smart uses the perpetual inventory system and the gross method. truman pays the invoice on february 8, and takes the appropriate discount. the journal entry that smart makes on february 8 is:

Answers: 3

continue

Business, 23.06.2019 06:00, guapotaco8102

If a society decides to produce consumer goods from its available resources, it is answering the basic economic question

Answers: 3

continue

Business, 23.06.2019 07:50, dillon3466

Aeuropean aircraft producer has spent 15 years in developing a new aircraft that would potential threaten long-lasting boeing's dominance (monopoly) in the same class of aircrafts. the new european aircraft gets high marks on all performance measures except noise. because of the noise, the european producers management is concerned that the us government may impose restrictions which would forbid their aircraft to land in some of the american airports. without restrictions the estimated (present discounted) profit would be 125 million usd. with the restrictions the profit would only be 25 million usd. the chances of both outcomes are estimated to be 50-50. management must decide now whether to the cost of redesign program problem and a 60% chance it will fail. should the european aircraft producer start the noise redesign program if they do not have any redesign parts of the aircraft to solve the noise problem. is 25 million usd. there is a 40% chance that redesign will solve the noise additional information than mentioned above? draw the decision tree, indicate probabilities and outcomes of the events * imagine that the company could find out in advance the outcome of the u. s. government's e find the expected value of perfect information about the u. s. government's decision. decision. draw a new decision tree, indicate probabilities and outcomes of the events.

Answers: 3

continue

Business, 23.06.2019 09:30, Gattuso

Which of these is true about a mandated reporter

Answers: 1

continue

You know the right answer?

The market price of calzones in a college town increased recently, and the students in an economics...