-In the above figure,the movement from point a to point b reflects
A) an increase in the price of pizza.
B) an increase in the supply of pizza.
C) an increase in the number of producers of pizza.
D) a decrease in the cost of the tomato sauce used to produce pizza.
E) a decrease in income if pizza is a normal good.

Question

-In the above figure,the movement from point a to point b reflects
A) an increase in the price of pizza. 
B) an increase in the supply of pizza. 
C) an increase in the number of producers of pizza. 
D) a decrease in the cost of the tomato sauce used to produce pizza. 
E) a decrease in income if pizza is a normal good.

Quizplus · Accepted Answer

An increase in the price of pizza would shift the supply curve to the left, causing the equilibrium price to rise from P1 to P2 and the equilibrium quantity to fall from Q1 to Q2.

-In the Above Figure,the Movement from Point a to Point