Figure 18-6 -Refer to Figure 18-6. the Graph Above Illustrates the Market

question 127

Multiple Choice

Figure 18-6
-Refer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries. If the wages paid to wedding cake bakers decrease, what happens in the market for bread bakers?

• A)Demand increases from D1 to D2.
• B)Demand decreases from D2 to D1.
• C)Supply increases from S1 to S2.
• D)Supply decreases from S2 to S1.

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Definitions:

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales.

Selling Price

The amount of money a buyer pays to purchase a product or service.

Target Cost

The maximum amount that can be spent on developing a product or service, while still earning the desired profit margin.

Selling Price

Selling Price is the amount of money a buyer pays to purchase a product or service, which could include considerations for costs, profit margins, and market demand.