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15 July, 19:00

Beer and pizza are complements because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza?

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  1. 15 July, 19:17
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    Supply - Unchanged

    demand - fall

    quantity supplied - fall

    quantity demanded - fall

    the price - fall

    Explanation:

    Complementary goods are consumed as a pair.

    Supply for pizza will not change. Because the producer will have no incentive to produce more since the demand will be low.

    Demand will decrease due to the low patronage from beer i. e the demand curve will shift to the left

    Quantity Supplied will fall as the producer will not be motivated to produce more due to low patronage from beer and pizza as well.

    Quantity demanded also falls due to high price for beer. Less of pizza too will be demanded.

    Price for pizza will fall because supply will b more than demand.
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