When the Price of Pizza Increases, Consumers Have an Incentiveto

question 86

Multiple Choice

When the price of pizza increases, consumers have an incentiveto:

• A)decrease their demand for pizza.
• B)purchase substitute goods such as Chinese food.(True Answer )Correct
• 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:

United States

A country located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Mid 1950s

Refers to the period from 1954 to 1956, a time characterized by post-WWII recovery, significant cultural shifts, and the early stages of the Cold War.

Stabilization Policy

Government policies aimed at stabilizing the economy by reducing fluctuations in production, employment, and prices.

Expected Effects

The anticipated outcomes or results that are predicted to occur as a consequence of a particular action or set of conditions.