Dan Owns One of the Many Bakeries in New York

question 468

Multiple Choice

Dan owns one of the many bakeries in New York City. Which of the following events will lead to an increase in Dan's demand for the services of bakers? (i)
The price of muffins increases. (Muffins are Dan's specialty.)
(ii)
Dan adds three new ovens to the kitchen area to help the bakers work faster.
(iii)
Local bakers form a union to protect themselves from low wages.

• A)(i) and (ii) only
• B)(ii) and (iii) only
• C)(i) and (iii) only
• D)(i), (ii), and (iii)

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Definitions:

Initial Margin

The percentage of the purchase price of securities (that can be bought on margin) that the investor must pay with his/her own cash or marginal securities.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, regulating banks, and ensuring financial system stability.

Securities and Exchange Commission

A U.S. federal agency responsible for enforcing the laws governing the securities industry, and regulating the securities markets and investment companies.