Asked by
Nabila Devanaarati
on Dec 11, 2024Verified
Which of the following is the best description of the effects of an increase in the supply of bread?
A) Consumers will pay more for bread.
B) Bread prices will fall, and bread sales will rise.
C) A permanent surplus of bread will remain on the market.
D) Bakers will have higher marginal costs.
Supply
The total amount of a certain good or service that is available to consumers, which can be affected by various factors like price, production costs, and technology.
Bread
A staple food made primarily from flour, water, and yeast or another leavening agent, baked into a variety of forms.
Surplus
An excess amount of a commodity, product, or resource beyond what is needed or utilized.
- Examine the influence of technological innovation on supply levels and market equilibrium conditions.
- Absorb the principle that alterations in supply and demand dictate market equilibrium prices and quantities.
Verified Answer
PD
Learning Objectives
- Examine the influence of technological innovation on supply levels and market equilibrium conditions.
- Absorb the principle that alterations in supply and demand dictate market equilibrium prices and quantities.