Scenario 5-2 the Supply of Aged Cheddar Cheese Is Inelastic, and the and the Supply

question 137

Multiple Choice

Scenario 5-2
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 5-2.The change in equilibrium price will be

• A) greater in the aged cheddar cheese market than in the bread market.
• B) greater in the bread market than in the aged cheddar cheese market.
• C) the same in the aged cheddar cheese and bread markets.
• D) Any of the above could be correct.

---

Definitions:

Society Interests

Collective concerns, objectives, or priorities that are considered beneficial for the community as a whole.

Organizational Mission

A statement that outlines an organization's purpose, identifying its scope of operations and guiding its strategic planning.

Market Strategy

A comprehensive plan that outlines how a business will reach potential consumers and turn them into customers of their products or services.

Social Responsibility

The ethical framework suggesting that individuals or organizations have an obligation to act for the benefit of society at large.