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Sedbober [7]
2 years ago
10

Analyzing Effects: Consumer concerns about nutrition and obesity contribute to a decrease in white bread sales and an increase i

n sales of whole wheat bread. This change in consumer taste prompts a major manufacturer known for its white bread to enter the market with a whole wheat bread product. What effect will this action have on the supply and equilibrium price of whole wheat bread?
Social Studies
1 answer:
Triss [41]2 years ago
4 0

The major manufacturer entering the market will lead to an increase in the supply of whole wheat bread and a decrease in its equilibrium price.

As a result of the major manufacturer entering the whole wheat market:

  • Supply will increase because the major manufacturer will produce more bread to be sold.

  • The equilibrium price will decrease because there will be more bread in the market relative to the demand for it.

When the supply of something increases more than the demand, the price will drop because the good is now less scarce. This is the case here. The supply of the bread increased as a result of the major manufacturer, so the prices will decrease.

In conclusion, the major manufacturer will increase supply but also reduce prices.

<em>Find out more at brainly.com/question/1222851.</em>

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8 0
1 year ago
One winter​ recently, the price of antique furniture increased by 10 percent and the quantity demanded decreased by 30 ​percent,
Monica [59]

Answer:

The cross-price elasticity is - 0.8.

Explanation:

The price of antique furniture increased by 10 percent and the quantity demanded decreased by 30 ​percent, and with no change in the price of refinishing products​, the quantity of refinishing products demanded decreased by 8 percent.

The cross-price elasticity of demand measures the change in the demand for a product due to a change in the price of a related good. Negative cross-price elasticity means the goods are complements. Positive cross-price elasticity implies that the goods are substitutes.

Cross price elasticity  

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= \frac{-8}{10}

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3 years ago
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lbvjy [14]

Answer:

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