Assume that pizza and hamburgers are the only food items available to consumers. If the price of pizza increases, other factors constant, then which of the following will definitely happen?
A)Total revenues received by pizza sellers will increase.
B)Total revenues received by pizza sellers will decrease.
C)Total revenues received by hamburger sellers will increase.
D)Total revenues received by hamburger sellers will decrease.

Question

Quizplus · Accepted Answer

When the price of pizza increases, assuming other factors remain constant, consumers may shift their consumption towards hamburgers as a substitute, potentially increasing the total revenues received by hamburger sellers.

Assume That Pizza and Hamburgers Are the Only Food Items