Consider the market for pita bread. All else equal, when tastes change such that more people like eating pita bread, we'd expect to see in this market [Select] [Select] V in equilibrium price and in equilibrium quantity.
Consider the market for pita bread. All else equal, when tastes change such that more people like eating pita bread, we'd expect to see in this market [Select] [Select] V in equilibrium price and in equilibrium quantity.
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 7P
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![Consider the market for pita bread.
All else equal, when tastes change such that more people like eating pita bread, we'd expect to see
in this market [Select]
in equilibrium price and
[Select]
in equilibrium quantity.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c360332-0d73-4448-ad65-bf3146d8eea0%2F050de33c-3a2f-49a7-9e23-9c7bcb9a87e4%2F84vk9tz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the market for pita bread.
All else equal, when tastes change such that more people like eating pita bread, we'd expect to see
in this market [Select]
in equilibrium price and
[Select]
in equilibrium quantity.
Transcribed Image Text:You want to make a model showing how people decide to decorate their houses and lawns. You
assume that homeowners follow the art idea of the "Golden Ratio" to decide where one item should
be in relation to another. In reality, the homeowners have never heard of the "Golden Ratio," but the
predictions made by your model are still very close to how things end up decorated.
An economist would say your model
O is not ideal due to the lack of realism
O is effective as long as the homeowners learn to use the Golden Ratio in decorating as a result of your study
is effective because economics focuses on predictions from models, not the assumptions used to create them
O is not ideal because it does not look sufficiently like the real world
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