An Increase in the Price of Wheat, an Important Ingredient

question 146

Essay

An increase in the price of wheat, an important ingredient in the production of bread, combined with an increase in the number of people consuming bread, will result in which of the following changes in the bread market?
A.Both the equilibrium price and quantity will increase.
B.Equilibrium quantity will decrease, but equilibrium price may decrease, increase, or stay the same.
C.Both the equilibrium price and quantity will decrease.
D.Equilibrium price will increase, but equilibrium quantity may decrease, increase, or stay the same.

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Definitions:

Existing One

This term does not seem to have a clear definition in a professional or business context and might not be a standard key term.

Market Segmenting

The practice of dividing a broad target market into subsets of consumers who have common needs, preferences, or characteristics, targeting them with specific marketing strategies.

Purchasing History

Recorded information detailing past transactions made by a buyer, used for analyzing buying behavior or trends.

Psychographic

Relating to the study of personalities, values, opinions, attitudes, interests, and lifestyles.