17. Another supply and demand puzzle The market price of cheeseburgers in a college town decreased recently, and the students in an economics class are debating the cause of the price decrease. Some students suggest that the price decreased because a new type of grill allows restaurants to cook a cheeseburger in half the time. Other students attribute the decrease in the price of cheeseburgers to a recent increase in the price of french fries. Everyone agrees that the increase in the price of french fries was caused by a recent increase in the price of potatoes, which are not generally used in making cheeseburgers. The first group of students thinks the decrease in the price of cheeseburgers is due to the fact that a new type of grill allows restaurants to cook a cheeseburger 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 cheeseburgers. 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. O Supply Demand Supply PRICE (Dollars per cheeseburger) Demand QUANTITY (Cheeseburgers) The second group of students attributes the decrease in the price of cheeseburgers to the increase in the price of french fries. On the following graph, adjust the supply and demand curves to illustrate the second group's explanation for the decrease in the price of cheeseburgers. Supply Demand Supply PRICE (Dollars per cheeseburger) Demand QUANTITY (Cheeseburgers) Suppose that both of the events you have just analyzed are partly responsible for the decrease in the price of cheeseburgers. 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 cheeseburgers? O Whichever change occurred first must have been the primary cause of the change in the price of cheeseburgers. If the equilibrium quantity of cheeseburgers increases, then the supply shift in the market for cheeseburgers must have been larger than the demand shift. If the equilibrium quantity of cheeseburgers increases, then the demand shift in the market for cheeseburgers must have been larger than the supply shift. If the price decrease was small, then the supply shift in the market for cheeseburgers must have been larger than the demand shift