-The Above Figure Shows a Graph of the Market for Pizzas

question 29

Multiple Choice

-The above figure shows a graph of the market for pizzas in a large town.Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas.As a result,for prices greater than $7,the

• A) supply curve is unchanged.
• B) supply curve is vertical.
• C) demand curve becomes vertical.
• D) demand curve becomes horizontal.

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Definitions:

Extraction Costs Curve

A graphical representation that shows how the cost of extracting a resource varies with the quantity extracted.

Marginal Extraction Costs

The additional costs associated with extracting one more unit of a resource, important in the economics of natural resource exploitation.

Upward-Sloping

Describes a line on a graph that inclines from left to right, indicating a positive relationship between two variables.

Natural Gas

A fossil fuel composed mainly of methane, used as a source of energy for heating, cooking, and electricity generation.