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the market price of pizzas in a college town increased recently, and the students in an economics class are debating the cause of the price increase. some students suggest that the price increased because several pizza parlors in the area have recently gone out of business. other students attribute the increase in the price of pizzas to a recent increase in the price of hamburgers at local burger joints.

Respuesta :

There is a same product and a substitute, the closure of other pizza shop is the same product and the hamburgers are substitute to pizza.

What is a Substitute?

Substitute is the similar nature of product, it is not the same product as the original product but the nature of satisfaction the product provides is the same and the product can be used as a substitute.

The increase in the prices of pizza in a college can be due to both the effects as both the products are same and substitute to the product. The closure of the pizza parlors provide the opportunity to the remaining pizza sellers as the only available option and being a monopolist in the area for pizzas.

Increase in the price of hamburgers at local shop is also a factor due to which the prices are increased because the substitute is also expensive so the consumer would pay more for the pizza as well if paying more for hamburger.

Learn more about Substitute at https://brainly.com/question/26965071

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