If the price of mozzarella cheese (an ingredient in pizza) declines, there would be:
A)a decrease in the supply of pizza.
B)an increase in the supply of pizza.
C)an increase in the quantity of pizza supplied.
D)no change in the supply of pizza.

Question

Quizplus · Accepted Answer

A decrease in the price of mozzarella cheese, an ingredient in pizza, would lead to a decrease in the cost of producing pizza. This, in turn, would increase the profitability of producing pizza, leading to an increase in the supply of pizza. Therefore, the correct answer is an increase in the supply of pizza.

If the Price of Mozzarella Cheese (An Ingredient in Pizza)