15. Another supply and demand puzzleSuppose the market price of pizzas in a university town recently decreased. Economics students studying at the university are discussing potential causes of the price decrease. One group of students theorize that the price decreased because a new type of pizza oven allows pizza shops to make a pizza in half the time. Others claim the decrease in the price of pizzas is because of a recent increase in the price of beer. Everyone agrees that the increase in the price of beer was caused by a recent increase in the price of grain, which is not generally used in making pizzas.The first group of students claim the decrease in the price of pizzas can be attributed to the fact that a new type of pizza oven allows pizza shops to make a pizza in half the time.On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the decrease 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.[Graph 1]The second group of students attributes the decrease in the price of pizzas to the increase in the price of beer.On the following graph, adjust the supply and demand curves to illustrate the second group's explanation for the decrease in the price of pizzas.[Graph 2] Ps: there are two identical graphs like the one on screen, Above I typed [graph 1&2] in their respective places.

Homework (Ch 04) O Supply Demand Supply PRICE (Dollars per pizza) Demand QUANTITY (Pizzas) Suppose that both groups of students are on the right track, and each of the events described above are partially responsible for the decrease 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 decrease in the price of pizzas? If the equilibrium quantity of pizzas decreases, then the demand shift in the market for pizzas must have been larger than the supply shift If the price decrease was large, then the supply shift in the market for pizzas must have been larger than the demand shift. If the equilibrium quantity of pizzas decreases, then the supply shift in the market for pizzas must have been larger than the demand shift. Whichever change occurred first must have been the primary cause of the change in the price of pizzas