5. Consider the market for pizza. a. Start in Equilibrium (be sure to label all relevant points) b. Change at least one of the ceteris paribus conditions. Assuming pizza and beer go well together, consider the market for pizza if the price of beer goes up. c. Examine the changed incentive. Which curve(s) has(have) changed? Why? (i.e. – which of the ceteris paribus conditions have changed?) _______________________________________________________ d. Identify the change(s) in direction, and draw into the above market. e. Finish in equilibrium. What are the effects on price and quantity?
5. Consider the market for pizza. a. Start in Equilibrium (be sure to label all relevant points) b. Change at least one of the ceteris paribus conditions. Assuming pizza and beer go well together, consider the market for pizza if the price of beer goes up. c. Examine the changed incentive. Which curve(s) has(have) changed? Why? (i.e. – which of the ceteris paribus conditions have changed?) _______________________________________________________ d. Identify the change(s) in direction, and draw into the above market. e. Finish in equilibrium. What are the effects on price and quantity?
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 12PAE
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5. Consider the market for pizza.
a. Start in Equilibrium (be sure to label all relevant points)
b. Change at least one of the ceteris paribus conditions. Assuming pizza and beer go well together,
consider the market for pizza if the
c. Examine the changed incentive. Which curve(s) has(have) changed? Why? (i.e. – which of the ceteris
paribus conditions have changed?) _______________________________________________________
d. Identify the change(s) in direction, and draw into the above market.
e. Finish in equilibrium. What are the effects on price and quantity?
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