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supply curve for pizza breaking news the price of pizza decreases due to consumers turning to healthier alternatives. consider the supply curve for pizza. what happens?
The law of supply states that, ceteris paribus, the quantity supplied of a good is positively related to its price. When the price of pizza decreases due to a change in consumer preferences (consumers turning to healthier alternatives), this is a change in price. On a supply - curve, a change in the price of the good itself leads to a movement along the supply curve. Since the price is decreasing, there will be a movement downwards along the supply curve for pizza, indicating a decrease in the quantity supplied.
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There is a movement downwards along the supply curve for pizza, resulting in a decrease in the quantity supplied.