Question: The table shows the demand and supply schedules for bread. Now two changes occur in the market for bread. Excellent weather increases the quantity supplied
The table shows the demand and supply schedules for bread.
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 when consumed in excess causes obesity, which decreases 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 more than the quantity demanded decreases, the equilibrium price and the equilibrium quantity
A rises, decreases
B rises; increases
C falls; decreases
D falls; increases
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