If the Equilibrium Point of 5-For-1 Pizza Is 2000 Pizzas

question 14

Multiple Choice

If the equilibrium point of 5-for-1 Pizza is 2000 pizzas per week and $10.00 per pizza, and the owner decides to make 1900 pizzas and sell them at the same price, what is the likely outcome?

• A) The business will have less expenses and also have greater profit.
• B) The business will have a shortage.
• C) The business will make more profit.
• D) The business will have a surplus.
• E) The business will have less expenses but no more profit.

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Definitions:

Government Agencies

Official organizations at the federal, state, or local level that administer and oversee specific functions or areas of public interest.

Product Pricing

The process of determining the financial value at which a product will be sold to consumers, balancing cost, demand, and profit objectives.

Variable Cost Concept

A cost that varies directly with the level of production or sales, such as materials and labor.

Unit Selling Price

The amount of money charged for selling one unit of a product or service.