- Pizza Is a Normal Good. in the Above Figure, the Figure

question 56

Multiple Choice

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Pizza is a normal good. In the above figure, the shift in the demand curve from D to D2 can be the result of

• A)a decrease in the price of soda, a complement to pizza.
• B)a study that shows that pizza is a very healthy food.
• C)an increase in the price of hamburgers, a substitute for pizza.
• D)an increase in the cost of producing pizza.
• E)a decrease in income.

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Definitions:

Administrative Expenses

Costs related to the general operation of a company, including expenses such as salaries of executive officers and costs of general services.

Variable

An element or factor that can change or vary, affecting the outcome of mathematical models, experiments, or financial projections.

Fixed

Pertaining to costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

Mixed

Pertaining to costs or variables that have both fixed and variable components, changing with the level of activity but not directly proportional to it.