If the price of a slice of pizza falls from $2 to $1, a pizza-loving consumer will
A) see her purchasing power fall.
B) see her purchasing power rise.
C) substitute more Chinese food for pizza.
D) spend more on soft drinks and less on pizza.

Question

Quizplus · Accepted Answer

With the decrease in price, the consumer's purchasing power has increased as they can now buy more slices of pizza with the same amount of money.

If the Price of a Slice of Pizza Falls from $2