Suppose the Price of Cheese Rises

question 337

Multiple Choice

Suppose the price of cheese rises. In the market for pizza, one would expect that

• A)the supply of pizza would increase, and the price would fall.
• B)the demand for pizza would increase, and the price would increase.
• C)the demand for pizza would decrease, and price would fall.
• D)the supply of pizza would decrease, and price would rise.

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Definitions:

Short-termism

The concentration on short-term projects or objectives for immediate profit at the expense of long-term security.

Resource Constraints

Limits on the availability of factors of production that reduce a company’s ability to produce goods and services.

Institutional Investors

Organizations that invest large amounts of money on behalf of their members, including pension funds, insurance companies, and mutual funds.

Sustainability

A way of doing business that supports the long-term ecological balance of the environment.