Learning Path
Question & Answer
Choose the Best Answer
The quantity demanded will increase, and the bakery will sell more cakes.
The quantity demanded will decrease, and the bakery will sell fewer cakes.
The quantity supplied will increase, and the bakery will sell more cakes.
The quantity supplied will decrease, and the bakery will sell fewer cakes.
Understanding the Answer
Let's break down why this is correct
Raising the price gives the bakery more money per cake. Other options are incorrect because People usually buy less when a product costs more; Even though people buy fewer cakes, the bakery can still make more cakes because it can charge more.
Key Concepts
Demand and Supply Basics
hard level question
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Deep Dive: Demand and Supply Basics
Master the fundamentals
Definition
Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.
Topic Definition
Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.
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