Answered

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Suppose that both of the events you have just analyzed are partly responsible for the decrease 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 decrease in the price of calzones?.

Sagot :

Parrain

Based on the arguments given, the best option is that A)If the equilibrium quantity of calzones increases, then the supply shift in the market for calzones must have been larger than the demand shift.

Effect of Supply increasing

The number of those selling calzones has increased which would lead to the Supply curve shifting right. This will lead to an increase in the equilibrium quantity.

Effect of demand decreasing

The increase in the complimentary good of beer led to a fall in price and equilibrium quantity as the demand curve shifted leftward.

Dominant cause

If the equilibrium quantity increases then it means that the effect of supply increasing was more than the effect of demand decreasing to the extent that it overrode the decreased quantity as a result of reduced demand.

In conclusion, option A is correct.

Find out more on supply and demand at https://brainly.com/question/4804206.

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