If mozzarella cheese used on pizzas decreases in price because of a technological improvement in cheese production, there would be __________.

Question

A decrease in the supply of pizza.

An increase in the supply of pizzas.

No change in the supply of pizza.

A decrease in the supply of mozzarella cheese.

Answer 1

There would be an increase in the supply of pizzas.

Here's the reasoning: If the price of mozzarella cheese decreases due to a technological improvement in cheese production, this reduced cost for a key ingredient (mozzarella cheese) would make it cheaper for pizza producers to make pizzas. As a result, they would be able to produce more pizzas at the same price or offer pizzas at a lower price, leading to an increase in the overall supply of pizzas.