suppose that both groups of students are on the right track, and each of the events described above are partially responsible for the increase in the price of chicken wings. 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 increase in the price of chicken wings?

suppose that both groups of students are on the right track, and each of the events described above are partially responsible for the increase in the price of chicken wings. 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 increase in the price of chicken wings?

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To determine which of the possible causes was the dominant cause of the increase in the price of chicken wings when both supply and demand factors are partially responsible, you would analyze the shifts in supply and demand curves and their effects on equilibrium price and quantity:

  • If the equilibrium quantity of chicken wings decreases, it indicates that the demand shift (increase in demand) was smaller than the supply shift (decrease in supply), meaning the supply shift was dominant.
  • Conversely, if the equilibrium quantity increases, the demand shift was larger than the supply shift, indicating demand was the dominant cause.
  • If the price increase is large but the quantity change is small, it suggests the supply shift was larger than the demand shift.
  • The timing of the changes can also provide clues: whichever change (supply or demand) occurred first might be considered the primary cause of the price change.

Thus, by examining the direction and magnitude of changes in equilibrium price and quantity in the chicken wings market, you can infer which cause-either the increase in the price of chicken (supply factor) or the increase in college student enrollment (demand factor)-had the dominant effect on the price increase

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