A Decrease in the Price of Pizza Will Lead to A(n)

question 128

Multiple Choice

A decrease in the price of pizza will lead to a(n) :

• A)increase in the demand for pizza.
• B)increase in the quantity of pizza demanded.
• C)decrease in the quantity of pizza demanded.
• D)decrease in the number of consumers.

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Definitions:

CPI

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.

Real Wages

Income from work, recalibrated to account for the cost of living changes, indicating the real value of earnings.

Economic Rent

Income earned from the use of a resource, above that which is economically or socially necessary, often associated with limited supply or monopoly conditions.

Federal Minimum Wage

The lowest legal hourly pay for many workers, as mandated by federal law.