If the Costs of Producing Pizza Increase,which Will Occur

question 285

Multiple Choice

If the costs of producing pizza increase,which will occur?

• A) The supply of pizza will decrease.
• B) The quantity of pizzas supplied will increase as sellers try to cover their costs.
• C) Pizza will cease to be produced and sold.
• D) The demand curve for pizza will shift leftward when the price of a pizza increases.
• E) The demand curve for pizza will shift rightward when the price of a pizza increases.

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Definitions:

Pareto Optimal

A state of distributing resources that precludes the possibility of augmenting the status of any participant or preference without detriment to another.

Positive Externalities

Benefits that are enjoyed by a third-party or society as a whole as a result of an economic transaction or activity, without them directly paying for it.

Utility Function

A mathematical representation that describes how consumers rank preferences among different commodity bundles.

Campers' Utility

A hypothetical measure of the satisfaction or happiness that campers gain from participating in camping activities or utilizing camping facilities.