Answer:
as the price of bread increases, the quantity of bread supplied will increase.
Explanation:
The law of supply shows the positive relationship between the price and the quantity supplied keeping all other factors constant. that means if the price of one good is increased so the quantity supplied of that good also increased
So as per the given situation if the price of bread rises so the quantity of bread supplied also rises
Therefore the last option is correct
Answer:
The principle or model of voluntary exchange assumes that people will act based on self-interests. This is an important component of a healthy economy. If individuals in a market economy do not feel that they will benefit from the exchange, they would not be willing to make it.
Hope this helps!
Answer:
A
Explanation:
If price of equipment which can be used as substitute for labour then company will prefer to buy that equipment which will decrease the demand for labour in a perfectly competitive labour market. Equipment will work as the replacement of labour.
Answer: d. fall and aggregate demand to decrease.
Explanation: When household savings increase, the consumption will fall, as the money which should be spent on consumption such as food, clothing and other products will reduce in other to foster household saving. Also, aggregate demand which is used to measure the total amount of demand for goods and services produced in an economy will also decrease as increase in aggregate demand will inadvertently lead to decrease in household saving.
Therefore, increase in savings requires reduction in spending and demand for products.
