If the Number of Pizza Restaurants in a Region Increases

question 55

Multiple Choice

If the number of pizza restaurants in a region increases from 50 to 100 in the last year,what is the likely result?

• A) There will be no increase in supply,hence there will have no effect on the equilibrium price.
• B) There will be an increase in supply,which will lead to a decrease in demand.
• C) There will be an increase in supply,which will lead to a decrease in the equilibrium price.
• D) There will be an increase in supply,which will lead to an increase in demand.
• E) It is not possible to predict what will happen.

---

Definitions:

Poorer Grows Faster

An observation in economics that poorer economies tend to grow at a faster rate than richer economies due to the catch-up effect.

Standard Of Living

A level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in the production process.

Human Capital

The economic value of an individual's skill set and knowledge, considered an asset in the production process.