A decrease in the price of pizza will lead to a(n):
A. decrease in the quantity of pizza demanded.
B. decrease in the number of consumers.
C. increase in the quantity of pizza demanded.
D. increase in the demand for pizza.
Answer: C
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Quotas and tariffs discourage foreign governments from retaliating with quotas and tariffs of their own
a. True b. False
During its run on Broadway, the play The Producers regularly sold out all available tickets at the St. James Theater. The theater could have raised ticket prices from $75 to $125 and still sold all available tickets but chose not to do so. The best
explanation for this decision is A) theater owners are unaware of the elasticity of demand for Broadway shows. B) theater owners do not want to raise their prices on weekends, when demand is high, and then have to lower prices during the week, when demand is lower. C) firms sometimes give up profits in the short run to keep their customers happy and increase their profits in the long run. D) theater owners are not motivated to maximize their profits.