Assume that the price of cheese has decreased and the price of garlic bread (a substitute good) has decreased at the same time. How this will affect the market for pizzas?    a. Quantity of pizza would rise, and the effect on price would be ambiguous.   b. Price of pizza would fall, and the effect on quantity would be ambiguous.   c. Quantity of pizza would fall, and the effect on price would be ambiguous.   d. Price of pizza would rise, and the effect on quantity would be ambiguous.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
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Assume that the price of cheese has decreased and the price of garlic bread (a substitute good) has decreased at the same time. How this will affect the market for pizzas? 
  a.

Quantity of pizza would rise, and the effect on price would be ambiguous.

  b.

Price of pizza would fall, and the effect on quantity would be ambiguous.

  c.

Quantity of pizza would fall, and the effect on price would be ambiguous.

  d.

Price of pizza would rise, and the effect on quantity would be ambiguous.

 

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