Question

If a ceiling on the price of bread leads to the disappearance of higher-quality, specialty bread from store shelves, which production decisions might this reflect? Correct Answer(s) Customers are rapidly buying the limited number of loaves available. Marketing is no longer aimed at upscale consumption. Specialty bread is available only direct from the bakery, to avoid transportation costs. Production shifts to a use of cheaper ingredients. Incorrect Answer(s)

Answer 1

Answer:

Production shifts to a use of cheaper ingredients

Explanation:

A price ceiling sets a limit on how high a product can be sold for. It is usually set by the government or an agency of the government. Price ceilings discourage producers.

Producers usually react to a price ceiling by reducing the quality of goods and services produced or by reducing the quantity produced so as to reduce cost.

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