-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

Question

Quizplus · Accepted Answer

When the price of tacos falls, consumers will shift their demand from pizza to tacos, assuming they are substitutes. This decrease in demand for pizza leads to a lower equilibrium price and quantity, which is represented by point E.

-The Above Figure Shows the Market for Pizza