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Question 9
Which of the following causes a movement upward along a given supply curve in the pizza market?
A) An increase in the price of pizza
B) An increase in the price of root beer, a complement to pizza
C) A decrease in the price of cheese, an input to pizza
D) A kitchen fire that destroys a popular pizza joint

Ask by John Rodriquez. in the United States
Mar 30,2025

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An increase in the price of pizza causes a movement upward along the supply curve.

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Beyond the Answer

When the price of a good increases, producers are generally motivated to supply more of that good because higher prices often lead to higher revenues. In the case of pizza, as the price goes up, pizzerias will be eager to make and sell more pies, resulting in a movement upward along the supply curve.
Additionally, understanding the supply curve is crucial for pizza entrepreneurs looking to maximize profits. If they notice an uptick in pizza prices due to high demand, they might boost production. However, if they misinterpret market signals and increase supply when prices drop, they could risk overproducing and incur losses.

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