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Increase in Demand for Pizzas

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Added on  2020-03-01

Increase in Demand for Pizzas

   Added on 2020-03-01

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Q1(Anon., n.d.)a.We have a shift OF the demand curve, An increase in income will shift demand curve D to right. Income is a demand determinant. Price and quantity will both rise as shown by the arrows. (Gallo, 2015)b.We have a shift along the demand curve from A to B .c.Assuming pizzas and burgers are substitutes, we have an increase in demand for pizzas. This is shown as a shift of the curve to right. Price and quantity will both rise as shown by the arrows.
Increase in Demand for Pizzas_1
d.Flour is an input into pizzas. A rise in input costs will lower supply. This is shown as a shift OF the supply curve to the left. Price will rise while quantity will fall. e.Petrol prices have no impact on pizzas. They do not affect demand or supply of pizza. f.Tomatoes are an ingredient in pizza making. A rise in input costs will lower supply. This is shown as a shift OF the supply curve to the left. Price will rise while quantity will fall.
Increase in Demand for Pizzas_2

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