Can anyone explain it to me?

Question

Suppose new technological developments in how pizza is cooked reduced the cost of producing a slice of pizza. What would this mean to both consumers and producers in relationship to the price of pizza and the amount of pizza supplied? Please explain your answer.

Answer 1

This will cause a rightward shift in the Supply curve. Since it is easier and cheaper to produce the pizza producers are more willing to produce more. This will creat a new price (intersection point) that is lower than the original one.

Answer 2

If the cost of Pizza went down that means that the supply curve is going to shift to the right because producers will be more willing to sell more goods at the same price. Therefore, price goes down, and quant goes up.

If for a perfectly competitive market price same

perfectly inelastice = nothing

Answer 3

well the producers are saving money and the consumers who buy them retail can sell them to customers at the same price for 2 or 3 bucks a slice. more pizza could be supplied for less cost to producers and the customers buying from pizza shop owners would be buying more pizza because more is availible. therefore the consumers are making more for the same cost sold to customers because there is more pizza in supply....

Answer 4

This really wouldn't mean much to the consumer unless they are going to lower the cost of the pizza, but it's highly unlikely. For the producer it would effectively help them to make more money.

Answer 5

tell my cusin danny.he knows about cooking.and he's 15!!!!!!!!!!!!!!!!!!