Asked by Grace Davis on Jul 03, 2024
Verified
A baker recently has come to expect higher prices for bread in the near future. We would expect
A) the baker to supply more bread now than she was supplying previously.
B) the baker to supply less bread now than she was supplying previously.
C) the demand for bread to fall.
D) no change in the baker's current supply of bread; instead, future supply will be affected.
Future Supply
Refers to the anticipated quantity of goods or services that will be available in the market at future dates.
- Determine the impact of future expectations on current supply and demand.
Verified Answer
DS
Daniel StubyJul 10, 2024
Final Answer :
B
Explanation :
Expecting higher prices in the future, the baker might reduce supply now to sell more later at those higher prices, thus supplying less bread currently.
Learning Objectives
- Determine the impact of future expectations on current supply and demand.