The folowing diagram shows the curves for perceived demand, marginal revenue, and cost for Manuela's Pizza, which serves Mexican-style pizza. Manuela's is one ofmany other fast food restaurants in this town.MCPriceand CostATCDemandQuantityof piezasWhich statement describes the transibon to the long nun? Select the best answer.O More fast food restaurants will enter the market, and Manuela's demand curve will become more elastic.Manuela's will raise its prices since there is a large demand for its pizzas.O More fast food restaurants will enter the market, and Manuela's demand curve will become more inelastic.Manuela's will experience lower costs of production because it will expand its output.

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Answered: More fast food restaurants will enter…

Business

Economics

More fast food restaurants will enter the market, and Manuela's demand curve will become more inelastic.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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