Assume That Pizza and Tacos Are Substitutes, and the Price

question 69

Multiple Choice

Assume that pizza and tacos are substitutes, and the price of a pizza increases. Which of the following correctly indicates what happens?

• A) The demand for pizza decreases and the demand for tacos increases.
• B) The quantity of tacos demanded increases and the quantity of pizza demanded decreases.
• C) The quantity of pizza demanded decreases and the demand for tacos increases.
• D) The demand for each decreases because both are normal goods.
• E) The demand for both goods decreases.

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Definitions:

Liquefy Sediments

The process by which solid sediments transform into a liquid state, often triggered by events such as earthquakes.

Tsunami

A series of ocean waves caused by underwater disturbances such as earthquakes, volcanic eruptions, or landslides, known for their devastating impact on coastal areas.

Landslides

The movement of rock, earth, or debris down a slope due to gravity.

Thrusting

A type of geological fault movement where one block of the earth's crust is pushed up over another.