does an increase in the demand for pizza bring a surplus or a shortage of pizzas at the original price? how…
does an increase in the demand for pizza bring a surplus or a shortage of pizzas at the original price? how does the market price change as the market moves to its new equilibrium? an increase in the demand for pizza brings a ______ of pizzas at the original price and the market price will ______. a. surplus; fall b. shortage; fall c. shortage; rise d. surplus; rise
Answer
Brief Explanations:
When there is an increase in the demand for pizza, at the original price, the quantity demanded exceeds the quantity supplied, creating a shortage. As the market moves to a new equilibrium, the market - price will rise due to the upward pressure on price from the shortage.
Answer:
C. Shortage, rise