Antony's Pizza uses the same dough, sauce, and cheese for pizza and calzones. When the price of pizza is low Antony produces more calzones. For Antony, the supply of pizza is ________ compared to the supply at a pizza restaurant that does not serve calzones.
A)less price elastic
B)more price elastic
C)higher
D)lower

Question

Quizplus · Accepted Answer

Supply is more elastic for Antony than at a restaurant that does not serve calzones because Antony can more easily respond to an increase in the price of pizza by shifting away from producing calzones to producing pizza.

Antony's Pizza Uses the Same Dough, Sauce, and Cheese for Pizza