Suppose Consumer Tastes and Preferences Shift from Pizza to Tacos

question 100

Multiple Choice

Suppose consumer tastes and preferences shift from pizza to tacos. In the short run case, these changing tastes will result in pizza restaurants ________ pizza prices and taco restaurants ________ taco prices.

• A) increasing; decreasing
• B) decreasing; increasing
• C) decreasing; decreasing
• D) increasing; increasing

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Definitions:

Scalability

The capability of a system, business model, or product to handle a growing amount of work or to be enlarged to accommodate that growth.

Equity

The value of an ownership interest in property or businesses, after deducting debts and liabilities.

First-Time Entrepreneurs

Individuals starting a business for the first time, often facing unique challenges and learning experiences.

Profitable Sales

Transactions that result in excess revenue over the cost of goods sold (COGS) and other expenses, contributing to the financial gain of a business.