The first group of students thinks the increase in the price of pizzas is due to the fact that several pizza parlors in the area have recently gone out of business.1. 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. The second group of students attributes the increase in the price of pizzas to the increase in the price of hamburgers at local burger joints2. 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. 10. Changes in equilibrium price and quantityThe 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 several pizza parlors in the area have recently gone out of business. Other students attributethe increase in the price of pizzas to a recent increase in the price of hamburgers at local burger joints.Everyone agrees that the increase in the price of hamburgers was caused by a recent increase in the price of ground beef, which is not generally usedin making pizzas. Assume that pizza parlors and burger joints are entirely separate entities-that is, there aren't places that serve both pizzas andhamburgers.The first group of students thinks the increase in the price of pizzas is due to the fact that several pizza parlors in the area have recently gone out ofbusiness.

1. Initially, the price of pizza is P and the quantity supplied is Q. When some pizza shops go out…

Answered: The first group of students thinks the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The first group of students thinks the increase in the price of pizzas is due to the fact that several pizza parlors in the area have recently gone out of business.

1. 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.

The second group of students attributes the increase in the price of pizzas to the increase in the price of hamburgers at local burger joints

2. 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.

10. Changes in equilibrium price and quantity
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 several pizza parlors in the area have recently gone out of business. Other students attribute
the increase in the price of pizzas to a recent increase in the price of hamburgers at local burger joints.
Everyone agrees that the increase in the price of hamburgers was caused by a recent increase in the price of ground beef, which is not generally used
in making pizzas. Assume that pizza parlors and burger joints are entirely separate entities-that is, there aren't places that serve both pizzas and
hamburgers.
The first group of students thinks the increase in the price of pizzas is due to the fact that several pizza parlors in the area have recently gone out of
business.

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