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:

Retained Earnings

The portion of a company's profits that are kept within the company instead of being paid out to the shareholders as dividends.

Issuing Shares

The process by which a company sells new shares to investors in order to raise capital.

Liquidity

The ability of an asset to be converted into cash quickly without significantly affecting its price.

Cash Flows

Cash Flows represent the movement of cash and cash equivalents into and out of a business, crucial for assessing its liquidity, flexibility, and overall financial performance.