ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the supply curve would shift right (increase)
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the supply curve would shift left (decrease)
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Either A or B
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None of the above
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Detailed explanation-1: -Hence a change in the price of hamburgers will shift the demand curve for pizza. An increase in the price of hamburgers will decrease its demand but increase the demand for Pizzas. Hence option (a) is correct. If the price of a good increase, then its demand along with the demand of its complement decreases.
Detailed explanation-2: -A rise or fall in the price of pizza will cause the quantity supplied to change, but not the supply schedule. In other words, a change in a good’s price moves the seller from one row to another in the same supply schedule, but does not require us to create a new supply schedule.
Detailed explanation-3: -A price change in pizza will not shift the supply curve of pizza. A change in price only results in a change in quantity supplied at that particular price.
Detailed explanation-4: -At higher prices, the quantity demanded is lower. A market demand schedule would allow the owner of the pizzeria to predict the total sales of pizza at various prices.