Author Question: If the price of pizza increases, the quantity of pizza demanded will fall because some consumers ... (Read 64 times)

nramada · **on:** Jun 30, 2018

If the price of pizza increases, the quantity of pizza demanded will fall because some consumers will switch to tacos, hamburgers, or submarine sanwiches. This is called the:
a. income effect
b. the alternative effect
c. the substitution effect
d. the normal good effect

Question 2

Restrictions on the types of food additives that breakfast cereal manufacturers can use is an example of a social regulation.
a. True
b. False
Indicate whether the statement is true or false