A Bakery Can Produce Either Cakes or Cookies

question 323

Multiple Choice

A bakery can produce either cakes or cookies. If the price of cookies rises, then

• A) the supply curve of cake shifts rightward.
• B) there is a movement downward along the supply curve of cakes.
• C) the supply curve of cake shifts leftward.
• D) there is a movement upward along the supply curve of cakes.

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Definitions:

Consumer Confidence

A measure of how optimistic or pessimistic consumers are about the economy's prospects and their own financial situation, which can influence their spending and saving behaviors.

Operational Efficiency

is the ability of an organization to deliver products or services to its customers in the most cost-effective manner without sacrificing quality.

Point-of-sale Systems

Electronic systems used at retail outlets to complete transactions, manage inventory, and record sales data.

Traffic Congestion

A condition on transport networks that occurs as use increases, characterized by slower speeds, longer trip times, and increased vehicular queueing.