Question: 1. Now look at the market-both demand and supply-for pizza in your local area. How would each of these events affect demand? Supply? Price? Quantity? Why?
a. decrease in the price of pepperoni
b. decrease in the price of beer
c. increase in local college enrollments
d. increase in the price of hamburgers
2. When would an increase in demand not result in higher prices? When would an increase in demand not result in higher quantities? (Hint: there is more than one answer to each question.) Explain the reasoning behind your answers.