Pizza Pizza developes a microwave pizza oven that cook a large pizza in 23 seconds. This cost-saving technology causes the price of pizza to
A) rise, and quantity demanded decreases.
B) rise, and quantity demanded increases.
C) fall, and quantity demanded decreases.
D) fall, and demand decreases.
E) fall, and quantity demanded increases.

Question

Quizplus · Accepted Answer

The introduction of a cost-saving technology would likely decrease the cost of production for Pizza Pizza, allowing them to reduce the price of their pizzas. Lower prices typically lead to an increase in quantity demanded, as consumers are more willing to purchase more of the product at a lower price.

Pizza Pizza Developes a Microwave Pizza Oven That Cook a Large