Question: Now two changes occur in the market for bread. Excellent weather increases the quantity supplied by 4 0 loaves a day at each price. A
Now two changes occur in the market for bread.
Excellent weather increases the quantity supplied by loaves a day at each price.
A news story on CNN reports that bread is good for your health, which increases the quantity demanded by loaves a day at each price.
How do the equilibrium price and quantity of bread change?
Because the quantity supplied increases by less than the quantity demanded increases, the equilibrium price and the equilibrium quantity
A rises; increases
B rises; decreases
C falls; increases
D falls; decreases
The new equilibrium price is $ a loaf and the new equilibrium quantity is loaves a day.
tabletablePricedollars perloaftableQuantitydemandedIoaves per daytableQuantitysupplied
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