A decrease in the price of pizza will lead to a(n):
A. increase in the demand for pizza.
B. increase in the quantity of pizza demanded.
C. decrease in the number of consumers.
D. decrease in the quantity of pizza demanded.
Answer: B
You might also like to view...
The opportunity costs of production in two countries engaged in trade
a. determine which country has an absolute advantage b. influence their domestic inflation rates c. lead to a higher level of economic efficiency d. create shifts of the production possibilities frontiers (PPF's) of both nations e. define the limits of the terms of trade
Firms that are price searchers
a. will eventually find and charge the highest price at which consumers will purchase any units. b. face inelastic demand curves for their products. c. do not confront rival sellers like price takers do. d. face a downward-sloping demand curve.
For a good that is taxed, the area on the relevant supply-and-demand graph that represents government's tax revenue is
a. smaller than the area that represents the loss of consumer surplus and producer surplus caused by the tax. b. bounded by the supply curve, the demand curve, the effective price paid by buyers, and the effective price received by sellers. c. a right triangle. d. a triangle, but not necessarily a right triangle.
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 ? 5,000P + 25MQs = 240,000 + 5,000P ? 2,000PIwhere P is price, M is income, and PI is the price of a key input. The forecasts for the next year are 
= $15,000 and 
I = $20. Average variable cost is estimated to beAVC = 14 ? 0.008Q + 0.000002Q2Total fixed cost will be $6,000 next year. What is the profit-maximizing output choice for the firm?
A. 4,000 units B. 6,000 units C. 5,000 units D. 3,000 units