210k views
5 votes
A frozen food manufacturer can produce either pizzas or calzones. As the result of an increase in the price of calzones, the firm produces more calzones and fewer pizzas.

1 Answer

3 votes

Answer:

More supply of calzones

Step-by-step explanation:

The increase in the price of calzones has resulted in an increase in the supply of calzones. The company can produce either pizzas or calzones; the increase in the supply of calzones will decrease the supply of pizzas. Overall, price and supply have a positive relationship which is why the increase in prices has increased the supply of calzones.

User Terry Mahaffey
by
8.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.