Which of the Following Would Cause the Equilibrium Price of White

question 227

Multiple Choice

Which of the following would cause the equilibrium price of white bread to decrease and the equilibrium quantity of white bread to increase?

• A)a decrease in the price of flour
• B)an increase in the price of flour
• C)an increase in the price of rye bread, a substitute for white bread
• D)an increase in the price of butter, a complement for white bread

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Definitions:

Scarce Resources

Natural, human, and capital resources that are limited in supply, which necessitates choices about how they are allocated.

Unlimited Wants

The economic principle that humans have infinite desires or wishes for goods and services, despite having limited resources.

Decision Makers

Individuals or entities in a position of authority who make choices that determine the course of actions to be followed, often affecting outcomes in business or organizational settings.

Secondary Effects

Unintended consequences of economic actions that may develop slowly over time as people react to events.