plz solve them as soon as possible

Question 4

Consider the pizza market in BC. Suppose an innovation in cheese processing technology makes it possible to produce more pizzas at a lower cost than ever before. Holding all other factors constant, what will be the effect of this technology on pizza market. Draw a graph and explain.

Answer:

Question 5

Consider the market for soft drinks in Canada, where there are over a thousand stores that sell soft drinks at any given moment. Suppose the health authority issues a public warning that consuming soft drinks is not good for health. Holding all other factors constant, what will be the effect on market? Draw a graph and explain.