How Markets Work Online Practice
Complete this assessment to review what you’ve learned. It will not count toward your grade.
13 of 1513 of 15 Items
Question
In a market for bread, improvements in the production of flour have led to an in increase in the bread supply. This shift has produced a temporary surplus of bread because the quantity supplied exceeds the quantity demanded. In a free market, this surplus will be eliminated because _____.(1 point)
Responses
higher prices will incentivize consumers to purchase smaller quantities of bread
higher prices will incentivize consumers to purchase smaller quantities of bread
higher profits will incentivize consumers to purchase greater quantities of bread
higher profits will incentivize consumers to purchase greater quantities of bread
lower prices will incentivize consumers to purchase greater quantities of bread
lower prices will incentivize consumers to purchase greater quantities of bread
lower profits will incentivize consumers to purchase smaller quantities of bread