Suppose consumer tastes and preferences shift from pizza to tacos. In the short run case, these changing tastes will result in pizza restaurants ________ pizza prices and taco restaurants ________ taco prices.
A) increasing; decreasing
B) decreasing; increasing
C) decreasing; decreasing
D) increasing; increasing

Question

Quizplus · Accepted Answer

As consumer preferences shift from pizza to tacos, demand for pizza decreases, leading pizza restaurants to lower prices to attract customers. Conversely, demand for tacos increases, prompting taco restaurants to raise prices due to higher demand.

Suppose Consumer Tastes and Preferences Shift from Pizza to Tacos