pAOpemp Sapi ng Learning In D MULTIPART LESSONS/97afb57ca94f48faae7cce2ed6f00881
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Question
pAOpemp Sapi ng Learning In D MULTIPART LESSONS/97afb57ca94f48faae7cce2ed6f00881?mode-startQuiz&irend; MTA Applicant Home Sign in to Election De -Python Syntax) Code X Transfer Appl SA Professional Supp Done ! Quiz 1 43. (Problem 16c.) Choose the statement that explains how the following event affects the equilibrium price and quantity of pizza. The price of tomato sauce falls O A. There will be a rightward shift of the de mand curve and, as a result, he equilibrium price of pizza will fall and the equilibrium quantity will rise B. There will be a leftward shift of the supply curve and, as a result, the equilibrium price of pizza will fall and the equilibrium quantity will rise. C. There will be a rightward shift of the supply curve and, as a result, the equilibrium price of pizza will fall and the equilibrium quantity will rise D. There will be a leftward shift of the demand curve and, as a result, the equilibrium price of pizza will fall and the equilibrium quantity will riseExplanation / Answer
Ans: There will be a rightward shift of the supply curve and, as a result, equilibrium price of pizza will fall and equilibrium quantity will rise.
Explanation:
Since, tomato sauce is an input of pizza production, when sauce price falls, the cost of pizza will decrease. So, supply of pizza will increase leading to rightward shift in supply curve of pizza.As a result, equilibrium price of pizza will fall and equilibrium quantity will rise.
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