A Bakery Can Produce Either Cakes or Cookies

question 173

Multiple Choice

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

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

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Definitions:

Common Carrier

A company or entity that provides transportation services to the general public under the regulation of government authorities.

Damaged Goods

Items that are physically harmed, impaired, or lessened in quality, making them less valuable or undesirable.

Act of God

A legal term for natural events outside of human control, such as floods or earthquakes, which cannot be predicted or prevented.

Vandalism

The intentional and malicious destruction, damage, or defacement of property without the consent of the owner.