Price: Cannot tell
Quantity: Decrease
A fall in consumer income will lower demand, shifting demand curve leftward, decreasing both price and quantity of pizza. At the same time, higher tax on pizza producers lower their profitability, so producers lower production, decreasing supply. The supply curve shifts leftward, increasing price and decreasing quantity. The net effect is a definite decrease in quantity. But price may increase, decrease or remain the same on basis of whether the leftward shift in demand curve is lower than, higher than or equal in magnitude to the leftward shift in supply curve.
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