Antonio's makes the greatest pizza and delivers it hot to all the dorms around campus. Last week Antonio's supplier of pepperoni informed him of a 25% increase in price. Which variable determining the position of the supply curve has changed and what effect does it have on supply?

(A) future expectation; Supply decreases

(B) future expectation; Supply increases

(C) input prices; Supply decreases

(D) input prices; Supply increases

Question

Cindy Lou Who

Business

5 March, 10:20

Antonio's makes the greatest pizza and delivers it hot to all the dorms around campus. Last week Antonio's supplier of pepperoni informed him of a 25% increase in price. Which variable determining the position of the supply curve has changed and what effect does it have on supply?

(A) future expectation; Supply decreases

(B) future expectation; Supply increases

(C) input prices; Supply decreases

(D) input prices; Supply increases

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Answers (1)

Know the Answer?

Georgia Vaughn · Answer 1

(C) input prices; Supply decreases

Explanation:

The input prices are all the cost Anonio inccurs to produce a pizza.

The pepperoni will be part of his input price.

The lowest price at which Antonio can sale a pizza is determinate by his cost.

Now Antonio need to sell their pizzas for more cash. So this increase generated a supply decrease.