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.

Suppose the market price of pizzas in a university town recently decreased. Economics students studying at the university are discussing potential causes of the price decrease. One group of students theorize that the price decreased because a new type of pizza oven allows pizza shops to make a pizza in half the time. Others claim the decrease in the price of pizzas is because of a recent increase in the price of bear. Everyone agrass that the increase in the price of beer was caused by a recent increase in the price of grain, which is not generally used in making pizzas. The first group of students claim the decrease in the price of pizzas can be attributed to the fact that a new type of pizza oven allows pizza shops to make a pizza in half the time. On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the decrease in the price of pizzas. Note: Select and drag one or both of the curves to the desired position. Curves will snap into…

Ch 23  Economics

8. Shifts in supply or demand I The following graph shows the market for donuts in Dallas, where there are over 1,000 donut shops at any given moment. Suppose a new scientific study shows that Dallas is the most polluted city in the world. Due to health concerns, a significant number of families move out of the city. Show the effect of this change on the market for donuts by shifting one or both of the curves on the following graph, holding all else constant. 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. PRICE (Dollars per donut) QUANTITY (Donuts) Supply Demand Demand If donuts are a normal good, this will cause the demand for donuts to 0 Supply ? Now suppose Congress passes a new tax that decreases the income of Dallas residents.

The following graph shows the market for cereal in San Diego, where there are over 1,000 stores that sell cereal at any given moment. Suppose a new scientific study shows that San Diego is the most polluted city in the world. Due to health concerns, a significant number of families move out of the city. *graph Now suppose Congress passes a new tax that decreases the income of San Diego residents. If cereal is a normal good, this will cause the demand for cereal to increase or decrease?

Consider the market demand for wine. Complete the following table by indicating whether an event will cause a movement along the demand curve for wine or a shift of the demand curve for wine, holding all else constant. Event An increase in the number of consumers An increase in the price of wine An increase in the price of beer (a substitute for wine) Movement Along Shift O O O Sous & Cantique

If the graph below represents the demand for tickets to broadway musicals, an increase in the price of a ticket to a broadway musical is illustrated by: Price A C B D1 D2 Quantity Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a a movement along D₁ from point B to point A. b a movement along D₁ from point A to point B. с a shift from point A on D₁ to point C on D2. d a shift from point C on D₂ to point B on D1.

The following graph shows the market for pizzas in San Diego, where there are over a thousand pizza restaurants at any given moment. Suppose the number of pizza restaurants increases significantly. Show the effect of this change on the market for pizzas by shifting one or both of the curves on the following graph, holding all else constant. 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. PRICE (Dollars per pizza) QUANTITY (Pizzas) Supply Demand Demand Supply (?)

Suppose we are analyzing the market for hot chocolate. During this winter season the following two events occurred simultaneously. Explain using the demand and supply curves how these twoevents affect the price and quantity of the hot chocolate.  Event A: The price of cocoa beans decreases.Event B: Consumer income falls because of a recession, and hot chocolate is considered a normalgood

Suppose the price of apples (a complement to peanut butter) rises.  At the same time, suppose the price of peanuts (which are used to make peanut butter) falls.  Given these changes, you should expect to see: a decrease in the equilibrium price of peanut butter, but it's hard to say what will happen to the equilibrium quantity. an increase in both the equilibrium price and quantity of peanut butter. an increase in the equilibrium quantity of peanut butter, but it's hard to say what will happen to the equilibrium price. an increase in the equilibrium price of peanut butter, but it's hard to say what will happen to the equilibrium quantity.