Suppose the market price of calzones in a university town recently decreased. Economics students studying at the university
causes of the price decrease. One group of students theorize that the price decreased because the price of dough, an important ingredient for making
calzones, has decreased. Others claim the decrease in the price of calzones is because of a recent decrease in the price of chicken wings at local wing
joints. Everyone agrees that the decrease in the price of chicken wings was caused by a recent decrease in the price of chicken, which are not
generally used in making calzones. Assume that pizza parlors and wing joints are entirely separate entities-that is, there aren't places that serve both
calzones and chicken wings.
The first group of students claim the decrease in the price of calzones can be attributed to the fact that the price of dough, an important ingredient for
making calzones, has decreased.
On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the decrease in the price of calzones.
lote: 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.
Supply
Demand
Demand
Supply