Suppose That the Current Price in a Market for Pizza

question 18

Multiple Choice

Suppose that the current price in a market for Pizza is $9.At that price,the quantity demanded is 519 and the quantity supplied is 400.In this market,we would expect that:

• A)the price of pizzas would increase.
• B)the price of pizzas would decrease.
• C)buyers would want to buy more pizza in the future.
• D)sellers would want to sell fewer pizzas in the future.

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Definitions:

Operating Capacity

The maximum output a company can produce using its current resources and assets under normal working conditions.

Total Assets

The sum of all current and long-term assets owned by a company, representing its total resources or what it owns.

Retention Ratio

The percentage of net earnings held back in the company instead of being distributed to stockholders in the form of dividends.

Selling And Administrative Expenses

Costs incurred by a company that are not directly tied to product manufacturing, including expenses like marketing, salaries of sales personnel, and management salaries.