Consider the perfectly competitive market for pizza slices.The prices of pepperoni and cheese have increased.Pepperoni and cheese are pizza making ingredients.

Consider the following statements.

1. These price changes will likely lead to a decrease in the supply of pepperoni pizzas.
2. These price changes will likely lead to a decrease in the demand for pepperoni pizzas.
3. These price changes will likely lead to a decrease in the quantity demanded of pepperoni pizzas.

Which one of the following conclusions below is TRUE?

Group of answer choices

A.Only statment 3 is correct.

B.Both statements 1 and 3 are correct.

C.None of the statements are correct.

D.Only statment 2 is correct.

E.Only statment 1 is correct.