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:

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