Suppose that in a small town in July, the price of a loaf of bread was $2.50 and 1700 loaves were transacted. In the same small town in August, the price of a loaf of bread was $2.29 and 1500 loaves were transacted. Which of the following alone can explain the change in the bread market from July to August? Select one: OA. The supply of bread decreased.

Suppose that in a small town in July, the price of a loaf of bread was $2.50 and 1700 loaves were transacted. In the same small town in August, the price of a loaf of bread was $2.29 and 1500 loaves were transacted. Which of the following alone can explain the change in the bread market from July to August? Select one: OA. The supply of bread decreased.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...

See similar textbooks

Similar questions

How does a price floor 521 above the equilibrium level affect quantity demanded and quantity1 supplied?
Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Sketch a demand and supply diagram to support your answers. The number of people at the most common ages for home-buying increases. People gain confidence that the economy is growing and that their jobs are secure. Banks that have made home loans find that a larger number of people than they expected are not repaying these loans. Because of a threat of a war, people become uncertain about their economic future. The overall level of saving, in the economy diminishes. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.
When analyzing a market, how do economists deal with the problem that many factors that affect the market are changing at the same time?
Suppose there is a soda tax to curb obesity. What should a reduction in the soda tax do to the supply of sodas and to the equilibrium price and quantity? Canyon show this graphically? Hint: Assume that the soda tax is collected from the sellers.
Use the four-step process to analyze the impact of the advent of the iPod (or other portable digital music players) on the equilibrium price and quantity of the Sony Wellman (or other portable audio cassette player).
In the financial market, what causes a movement along the supply curve? What causes a shift in the supply curve?
Select the correct answer. A price floor will usually shift: demand supply both neither Illustrate your answer with a diagram.
How can you locate the equilibrium point on a demand and supply graph?
We know that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future. How will that affect demand for the product in the present? Can you show this graphically?
What is the difference between the supply and the quantity supplied of a product, say milk? Explain in words and show the difference on a graph with the supply curve for milk.
If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?
Name some farm that can cause a shift in the supply curve in markets for goods and services.