Asked by Tatum Briggs on Apr 30, 2024
Verified
If the price of mozzarella cheese (an ingredient in pizza) declines,there will be:
A) a decrease in the supply of pizza.
B) an increase in the supply of pizza.
C) a decrease in the quantity of pizza supplied.
D) no change in the supply of pizza.
Mozzarella Cheese
A soft, white cheese originally from Italy, commonly used on pizzas and in various dishes.
Supply of Pizza
The total quantity of pizza that producers are willing and able to sell at various prices over a certain period of time.
Quantity of Pizza Supplied
The total number of pizza units that sellers are willing and able to sell at a given price within a certain period.
- Uncover the reasons behind an increase or decrease in the supply of a product.
- Assess how the costs of inputs affect the supply chain of goods.
Verified Answer
MS
Mattison StephensonMay 02, 2024
Final Answer :
B
Explanation :
A decrease in the price of an ingredient in pizza, such as mozzarella cheese, will lower the production cost for pizzerias, enabling them to produce more pizza for the same price. Therefore, the decrease in the price of mozzarella cheese will lead to an increase in the supply of pizza.
Learning Objectives
- Uncover the reasons behind an increase or decrease in the supply of a product.
- Assess how the costs of inputs affect the supply chain of goods.