Pizza and Tacos Are Substitutes,and the Price of a Pizza

question 154

Multiple Choice

Pizza and tacos are substitutes,and the price of a pizza increases.Which of the following correctly indicates what happens?

• A) The demand for pizzas decreases and the demand for tacos increases.
• B) The demand for both goods decreases.
• C) The quantity of tacos demanded increases and the quantity of pizza demanded decreases.
• D) The quantity of pizza demanded decreases and the demand for tacos increases.
• E) The demand for each decreases because both are normal goods.

---

Definitions:

Depreciates In Value

The process by which an asset loses value over time.

French Champagne

French Champagne is a sparkling wine made from specific grape varieties grown in the Champagne region of France, adhering to strict production rules.

Balance Of Payments

A record of all economic transactions between the residents of a country and the rest of the world in a period.

U.S. Financial Assets

Economic resources or possessions of value owned or controlled by individuals or entities in the United States, including stocks, bonds, and bank deposits.