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Economics

The market price of pizza in College Town decreased recently. Some students in an economics class suggest that the price fell because several new pizza parlors opened for business in the area. Other students attributed the fall in the price of pizza more to the fall in the price of hamburgers at local burger joints. Everyone agreed that the fall in the price of hamburgers was caused by a fall in the price of ground beef. 8.3. Using your analysis of the explanations offered by the two groups of students, how would you identify which explanation is the dominant or main cause of the decrease in the price of pizza? You can adjust the curves on the supply and demand graph to help you choose the correct multiple choice option below.

A. If the equilibrium quantity of pizza increased, then the dominant cause must have been the demand shift in the market for pizza caused by the decrease in the price of hamburgers.

B. It depends on whether the demand curve or supply curve changed first.

C. If the equilibrium quantity of pizza increased, then the dominant cause must have been the supply shift in the market for pizza.

D. If the equilibrium quantity of pizza decreased, then the dominant cause must have been the supply shift in the market for pizza.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91953602

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