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
Another question on Business
Business, 22.06.2019 01:00
The following account balances at the beginning of january were selected from the general ledger of fresh bagel manufacturing​ company: work in process inventory ​$0 raw materials inventory $ 29 comma 000 finished goods inventory $ 40 comma 900 additional​ data: 1. actual manufacturing overhead for january amounted to $ 62 comma 600. 2. total direct labor cost for january was $ 63 comma 600. 3. the predetermined manufacturing overhead rate is based on direct labor cost. the budget for the year called for $ 255 comma 000 of direct labor cost and $ 382 comma 500 of manufacturing overhead costs. 4. the only job unfinished on january 31 was job no.​ 151, for which total direct labor charges were $ 5 comma 700 ​(1 comma 000 direct labor​ hours) and total direct material charges were $ 14 comma 400. 5. cost of direct materials placed in production during january totaled $ 123 comma 300. there were no indirect material requisitions during january. 6. january 31 balance in raw materials inventory was $ 35 comma 200. 7. finished goods inventory balance on january 31 was $ 35 comma 400. what is the cost of goods manufactured for​ january
Answers: 1
Business, 22.06.2019 04:00
Don’t give me to many notifications because it will cause you to lose alot of points
Answers: 1
Business, 22.06.2019 09:40
Henry crouch's law office has traditionally ordered ink refills 55 units at a time. the firm estimates that carrying cost is 35% of the $11 unit cost and that annual demand is about 240 units per year. the assumptions of the basic eoq model are thought to apply. for what value of ordering cost would its action be optimal? a) for what value of ordering cost would its action be optimal?
Answers: 2
Business, 22.06.2019 12:50
Demand increases by less than supply increases. as a result, (a) equilibrium price will decline and equilibrium quantity will rise. (b) both equilibrium price and quantity will decline. (c) both equilibrium price and quantity will rise
Answers: 3
You know the right answer?
The market price of calzones in a college town increased recently, and the students in an economics...
Questions
Computers and Technology, 24.09.2019 00:30
Physics, 24.09.2019 00:30
Mathematics, 24.09.2019 00:30
Advanced Placement (AP), 24.09.2019 00:30
