Suppose That the Price of Bread Rises

question 323

Multiple Choice

Suppose that the price of bread rises.This rise could be the result of

• A) a decrease in the supply of bread.
• B) an increase in the supply of bread.
• C) a decrease in the demand for bread.
• D) Both answers A and C are correct.
• E) Both answers B and C are correct.

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Definitions:

Movability

The quality of a negotiable instrument that ensures it is mobile and available.

Negotiable Instruments

Negotiable instruments are written orders or unconditional promises to pay a fixed amount of money on demand or at a set time to the bearer or to the order of a specified person.

Consideration

Something of value that is exchanged between parties within a contract, giving it legal validity.

Offer And Acceptance

Fundamental concepts in contract law which determine when an agreement exists between two parties. An offer is a proposal while acceptance is the agreement to that proposal.