Scenario 5-3 Suppose That the Supply of Aged Cheddar Cheese Is Inelastic,and

question 2

Multiple Choice

Scenario 5-3
Suppose that the supply of aged cheddar cheese is inelastic,and the supply of bread is elastic.Both goods are considered to be normal goods by a majority of consumers.Suppose that a large income tax increase decreases the demand for both goods by 10%.
-Refer to Scenario 5-3.The price elasticity of supply for bread could be

• A)-1.
• B)0.
• C)0.5.
• D)1.5.

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Definitions:

Consumer View

Refers to the perspective or approach taken by consumers when assessing, purchasing, or using goods and services.

Cash Gifts

Money given to someone without any expectation of repayment, often as a form of financial support or to mark a special occasion.

Noncash Gifts

Donations or gifts given in forms other than cash or cash equivalents, such as property, goods, or services.

Consumer Preferences

The inclination or tendency of consumers to favor certain products, brands, or services over others, based on factors like price, quality, convenience, and personal tastes.