The following graph shows the market for pizzas in Dallas, where there are over 1,000 pizza restaurants at any given moment. Suppose an innovation in the baking process makes it possible to produce more pizzas at a lower cost than ever before. Show the effect of this change on the market for pizzas by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and snaps back to its original position, just drag it a little farther. (? Supply Demand Supply Demand QUANTITY (Pizzas) PRICE (Dollars per pizza)
The following graph shows the market for pizzas in Dallas, where there are over 1,000 pizza restaurants at any given moment. Suppose an innovation in the baking process makes it possible to produce more pizzas at a lower cost than ever before. Show the effect of this change on the market for pizzas by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and snaps back to its original position, just drag it a little farther. (? Supply Demand Supply Demand QUANTITY (Pizzas) PRICE (Dollars per pizza)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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