The following graph shows the market for pizzas in Montreal, where there are more than a thousand pizzerias 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. Supply Demand Supply Demand QUANTITY (Pizzas) PRICE (Dollars per pizza)

The following graph shows the market for pizzas in Montreal, where there are more than a thousand pizzerias 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. Supply Demand Supply Demand QUANTITY (Pizzas) PRICE (Dollars per pizza)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 7P

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