Antonio's makes the greatest pizza and delivers it hot to all the dorms around campus. Last week, Antonio's supplier of pepperoni informed him of a 25 percent increase in the cost of pepperoni. What variable that determines the position of the supply curve has changed?
A) input prices
B) future expectations
C) number of suppliers
D) technological changes

Question

Quizplus · Accepted Answer

The variable that has changed is input prices, specifically the cost of pepperoni which is an input in making pizzas. As a result, the cost of producing pizzas has increased, which could shift the supply curve to the left, meaning Antonio's may choose to supply less pizza at the same price or raise their prices to maintain their profit margins.

Antonio's Makes the Greatest Pizza and Delivers It Hot to All