Suppose the market price of pizzas in a university town recently increased. Economics students studying at...

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Suppose the market price of pizzas in a university town recently increased. Economics students studying at the university are discussing potential causes of the price increase. One group of students theorize that the price increased because the price of dough, an important ingredient for making pizzas, has increased. Others claim the increase in the price of pizzas is because of a recent increase in the price of chicken wings at local wing joints. Everyone agrees that the increase in the price of chicken wings was caused by a recent increase in the price of chicken, which is not generally used in making pizzas. Assume that pizzerias and wing joints are entirely separate entitiesthat is, there aren't places that serve both pizzas and chicken wings. The first group of students claim the increase in the price of pizzas can be attributed to the fact 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. PRICE (Dollars per pizza) 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. QUANTITY (Pizzas) Supply Demand Demand Supply (?) PRICE (Dollars per pizza) The second group of students attributes the increase in the price of pizzas to the increase in the price of chicken wings at local wing joints. 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. QUANTITY (Pizzas) Supply Demand Demand Supply (? Suppose that both groups of students are on the right track, and each of the events described above are partially 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 determine which of the possible causes was the dominant cause of the increase in the price of pizzas? Whichever change occurred first must have been the primary cause of the change in the price of pizzas. If the equilibrium quantity of pizzas increases, then the demand shift in the market for pizzas must have been larger than the supply shift. If the price increase was small, then the supply shift in the market for pizzas must have been larger than the demand shift. If the equilibrium quantity of pizzas increases, then the supply shift in the market for pizzas must have been larger than the demand shift. Suppose the market price of pizzas in a university town recently increased. Economics students studying at the university are discussing potential causes of the price increase. One group of students theorize that the price increased because the price of dough, an important ingredient for making pizzas, has increased. Others claim the increase in the price of pizzas is because of a recent increase in the price of chicken wings at local wing joints. Everyone agrees that the increase in the price of chicken wings was caused by a recent increase in the price of chicken, which is not generally used in making pizzas. Assume that pizzerias and wing joints are entirely separate entitiesthat is, there aren't places that serve both pizzas and chicken wings. The first group of students claim the increase in the price of pizzas can be attributed to the fact 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. PRICE (Dollars per pizza) 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. QUANTITY (Pizzas) Supply Demand Demand Supply (?) PRICE (Dollars per pizza) The second group of students attributes the increase in the price of pizzas to the increase in the price of chicken wings at local wing joints. 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. QUANTITY (Pizzas) Supply Demand Demand Supply (? Suppose that both groups of students are on the right track, and each of the events described above are partially 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 determine which of the possible causes was the dominant cause of the increase in the price of pizzas? Whichever change occurred first must have been the primary cause of the change in the price of pizzas. If the equilibrium quantity of pizzas increases, then the demand shift in the market for pizzas must have been larger than the supply shift. If the price increase was small, then the supply shift in the market for pizzas must have been larger than the demand shift. If the equilibrium quantity of pizzas increases, then the supply shift in the market for pizzas must have been larger than the demand shift.