ings appear when half the time, 5 minutes 1 minute, and 30 seconds remain Mutipl

Question

ings appear when half the time, 5 minutes 1 minute, and 30 seconds remain Mutiple Attempts Not allowed This test can only be taken once Force Completion Once sarted this test must be completed in one sining Do not leave the test before clicsing Save and Submit This test does not allow backtracking Changes to the answer after submission are prohibited Remaining Time: 1 hour, 11 minutes, 07 seconds. Question 2 of 45 A Moving to the next question prevents changes to this answer Question 2 4 points Save Answer Demand Quantity Rete to the figure above This figure represen s a market za Supose that the wages fo ? ores in pizzerias ncrease, and aine same time the prce of tacos [a substitute for pizza falls What wil happen to the equilibrium price and quantity in the markst for pizza both price and quarety would be lower quantity would be lower but the direction of the price change cannot be detemined both price and quantity would be higher price would be higher and quantity would be lower Question 2 of 45

Explanation / Answer

In the market, wages are increased and at the same time price of substitute falls. This shifts the supply to the left on one side and demand to the left on other side. Hence price will rise as well as fall so the net change is ambiguous. Quantity falls definitely

2nd option is correct.

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