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Suppose that both of the events you have just analyzed are partly 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 figure out which of the possible causes was the dominant cause of the decrease in the price of pizzas?
1) If the equilibrium quantity of pizzas decreases, then the demand shift in the market for pizzas must have been larger than the supply shift.
2) If the price decrease was large, then the supply shift in the market for pizzas must have been larger than the demand shift.
3) Whichever change occurred first must have been the primary cause of the change in the price of pizzas.
4) If the equilibrium quantity of pizzas decreases, then the supply shift in the market for pizzas must have been larger than the demand shift.
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