Derrick Owns and Operates a Bakery

question 19

Multiple Choice

Derrick owns and operates a bakery.Every Saturday he bakes a batch of fresh kolaches,and every Saturday he sells all the kolaches and has to turn some customers away.Which of the following statements is correct?

• A)At the current price,quantity demanded exceeds quantity supplied.
• B)The current price is higher than the equilibrium price.
• C)If Derrick lowered the price of kolaches,the shortage would increase.
• D)both a and c
• E)all of the above

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Definitions:

Recency Effect

is the cognitive phenomenon where the most recently presented items or experiences are more likely to be remembered than those presented earlier.

Superimposing

The process of laying or placing one thing over another, typically so that both are still evident.

Patterning

The recurring or organized arrangement of elements in a particular sequence or design.