If the Cost of Flour Increases from $3 to $5

question 102

Multiple Choice

If the cost of flour increases from $3 to $5 a bag,you could predict the supply curve for bagels to:

• A) shift to the right.
• B) shift to the left.
• C) become steeper.
• D) become flatter.
• E) increase.

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Definitions:

Acre of Land

A unit of area used in the United States and the United Kingdom, equivalent to 43,560 square feet.

Price Mechanism

The system by which the forces of supply and demand determine the prices of goods and services and allocate resources in an economy.

Usury Laws

Regulations governing the amount of interest that can be charged on a loan, intended to prevent lenders from imposing excessively high interest rates.

Price Ceiling

A legal maximum price that can be charged for a good or service, typically set by government to protect consumers.