Question

A baker recently has come to expect higher prices for bread in the near future. We would expect Group of answer choices the baker to supply more bread now than she was supplying previously. the baker to supply less bread now than she was supplying previously. the demand for bread to fall. no change in the baker's current supply of bread; instead, future supply will be affected.

Answer 1

Answer: the baker to supply less bread now than she was supplying previously

Explanation: Going by the concept of demand and supply with respect to price of goods and services which is a factor which affects these two economic phenomenon, When there is a perceived or possible rise in the price of goods and services, manufacturers in a bid to maximize profit, tends to hoard the available amount of goods available, by supplying the market below the usual amount. Conversely, when there is a perceived decline in future price, they tend to supply more than usual in other to reduce or minimize loss.