Using Graphs, Explain the Effect of an Increase in the Price

question 21

Essay

Using graphs, explain the effect of an increase in the price of cheese on the supply of
cheese and the supply of pizza.

---

Definitions:

Buyers

Individuals or entities that acquire goods or services in exchange for monetary payment.

Sellers

Individuals or entities that offer goods or services for sale in the marketplace.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied at those prices.

Excise Tax

A tax charged on specific goods, such as tobacco and alcohol, typically imposed by the government to regulate or discourage their consumption.