Question
The market price of cheeseburgers in a college town increased recently, and the students in an economics class are debating the cause of the price
The market price of cheeseburgers 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 several burger joints in the area have recently gone out of business. Other students attribute the increase in the price of cheeseburgers to a recent increase in the price of calzones at local pizza parlors.
Everyone agrees that the increase in the price of calzones was caused by a recent increase in the price of pizza dough, which is not generally used in making cheeseburgers. Assume that burger joints and pizza parlors are entirely separate entitiesthat is, there aren't places that serve both cheeseburgers and calzones.
The first group of students thinks the increase in the price of cheeseburgers is due to the fact that several burger joints in the area have recently gone out of business.
Show on a graph and illustrate the first groups explanation for the increase in the price of cheeseburgers
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