5-for-1 Pizza is operating at the point where the supply curve intersects the demand curve. If the owner decides to increase the price and not change the production level, what will result?
A) A shortage
B) A surplus
C) More profit
D) A shift in the supply curve
E) A shift in the demand curve

Question

Quizplus · Accepted Answer

Increasing the price above the equilibrium point without changing the production level will result in a surplus, as the quantity supplied will exceed the quantity demanded at the new higher price.

5-For-1 Pizza Is Operating at the Point Where the Supply