An Increase in the Price of the Cheese Used to Produce

question 164

Multiple Choice

An increase in the price of the cheese used to produce pizza shifts the supply curve of pizza ________ and shifts the demand curve for pizza ________.

• A) rightward; leftward
• B) leftward; leftward
• C) leftward; not at all
• D) not at all; leftward

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Definitions:

Bottlenecks

Points of congestion or blockage in a production process or system that lead to inefficiencies and delays.

Major Business Projects

Significant initiatives undertaken by businesses that involve considerable investment and are aimed at achieving specific strategic goals.

Prospect Theory

A theory in behavioral economics that evaluates how people choose between probabilistic alternatives that involve risk, where the probable outcomes are known.

Diminishing Marginal Utility

The principle that as a consumer increases the consumption of a good or service, the marginal utility obtained from each additional unit of the good or service decreases.