When the Price of Pizza Increases, Consumers Have an Incentive

question 61

Multiple Choice

When the price of pizza increases, consumers have an incentive to:

• A) decrease their demand for pizza.
• B) purchase substitute goods such as Chinese food.
• C) increase their consumption of pizza as it is now more valuable.
• D) open another pizza restaurant in order to increase supply and drive prices down.

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Definitions:

Boycotts

Organized refusal to buy, use, or participate in something as a form of protest or to exert pressure for change.

Taft-Hartley Act

A 1947 United States federal law that restricts the activities and power of labor unions, also known as the Labor Management Relations Act.

Prohibits

Officially forbids or disallows a certain action, behavior, or practice by law or regulation.

Coercing Employees

The act of compelling employees to act or not act under threat, pressure, or intimidation, often in the context of labor relations.