Question

01 Test to 10 What is the effect on demand for bread when the price of bagels, a substitute for bread, rises? The demand curve for bread shifts to the right. The demand curve for bread shifts to the left The quantity of bread demanded increases. The quantity of bread demanded decreases. Which of the following would cause the supply curve for bread to shift inward? An increase in the price of bread OAn increase in the price of bagels O A decrease in the price of bread °An increase in the price of four at every price, firms find producing the good to be move probitable the price of the good increases. at every price, firms find producing the pood to be less protitable. An i O the price of the good decreases. The price of beead The demand for bread The cost of inputs Which of the following factors does not affect how much bread a baker is willing to produce? - Technolog

Answer 1

10. The demand curve for bread shifts to the right.

Bread and Bagels are substitutes. If price of bagels rises, demand for bread increases. Increase in demand will shift the demand curve to the right.

11. An increase in the price of bagels

Inward shift of supply means the supply curve will shift to the left. Leftward shift of supply curve denotes decrease in supply because of increase in price of other commodity.

12. At every price, firms find producing the good to be more profitable.

A technological improvement that reduces costs of production will shift supply curve outward, causing a greater quantity to be produced at any given price. As cost decreases, profit increases.

13. Demand for bread

Price of bread, cost of inputs and technology are the determinants of supply. These factors affect supply (will affect the willingness of the baker to produce)