Which of the Following Is the Best Description of the Effects

question 54

Multiple Choice

Which of the following is the best description of the effects of an increase in the supply of bread?

• A) Consumers will pay more for bread.
• B) Bread prices will fall, and bread sales will rise.
• C) A permanent surplus of bread will remain on the market.
• D) Bakers will have higher marginal costs.

---

Definitions:

Profits

The financial gain realized when the revenue from selling goods or services exceeds the costs of production.

Monopolized

Refers to a market structure where a single firm or entity controls a significant portion of the market share, reducing competition.

Consumer Surplus

Consumer Surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Net Social Gain

The overall benefit to society, calculated by subtracting total social costs from total social benefits.