If the costs of producing pizza increase,which will occur?
A) The supply of pizza will decrease.
B) The quantity of pizzas supplied will increase as sellers try to cover their costs.
C) Pizza will cease to be produced and sold.
D) The demand curve for pizza will shift leftward when the price of a pizza increases.
E) The demand curve for pizza will shift rightward when the price of a pizza increases.

Question

Quizplus · Accepted Answer

If the costs of producing pizza increase, producers will have to either increase the price of pizza or reduce the quantity supplied to maintain profitability. If they choose to increase the price, consumers may be deterred from buying pizza, reducing demand. Therefore, it is likely that the supply of pizza will decrease.

If the Costs of Producing Pizza Increase,which Will Occur