Figure 18-6 -Refer to Figure 18-6. the Graph Above Illustrates the Market

question 276

Multiple Choice

Figure 18-6
-Refer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries in Northern Minnesota. If Northern Minnesota experiences an increase in immigration from Canada, what happens in the market for bakers?

• A)Demand increases from D1 to D2.
• B)Demand decreases from D2 to D1.
• C)Supply increases from S1 to S2.
• D)Supply decreases from S2 to S1.

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Definitions:

Related Diversification

A growth strategy where a business expands its operations into areas that are similar to its existing operations, aiming to leverage its existing strengths and capabilities.

Business Strategy

Deals with how the firm will compete in each market where it conducts business.

Retrenchment

The act of reducing costs or spending in response to economic difficulty, often involving layoffs or downsizing of an organization.

Prospector Strategy

A business approach focused on innovation, seeking out new markets and opportunities, characterized by flexibility and a readiness to adapt to changing environments.