-The above figure shows a graph of the market for pizzas in a large town.Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce no more than 40 pizzas.What will the price of pizza be as a result of this quota?
A) $2
B) $7
C) $8
D) $10

Question

-The above figure shows a graph of the market for pizzas in a large town.Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce no more than 40 pizzas.What will the price of pizza be as a result of this quota?
A) $2 
B) $7 
C) $8 
D) $10

Quizplus · Accepted Answer

The quota limits the supply to 40 pizzas, which corresponds to the price where the quantity supplied equals 40 on the supply curve. This price is $10.

-The Above Figure Shows a Graph of the Market for Pizzas