An increase in the price of the cheese used to produce pizza shifts the supply curve of pizza ________ and shifts the demand curve for pizza ________.

Question

Quizplus · Accepted Answer

An increase in the price of cheese, an input in pizza production, makes it more costly to produce pizza, leading to a decrease in supply (shift leftward). However, this does not directly affect consumers' desire for pizza, so the demand curve remains unchanged.

An Increase in the Price of the Cheese Used to Produce