You notice that your grocery store always has day-old bakery products at a reduced price. Why might that be?

A. At the original price, the quantity demanded was greater than the quantity supplied.

B. At the original price, there was a shortage of bakery products.

C. The original price was an equilibrium price because it was established in a free market.

D. At the original price, quantity supplied was greater than quantity demanded.

D. At the original price, quantity supplied was greater than quantity demanded.

Question

Business

Jeremy Herman

7 August, 09:24

You notice that your grocery store always has day-old bakery products at a reduced price. Why might that be?

A. At the original price, the quantity demanded was greater than the quantity supplied.

B. At the original price, there was a shortage of bakery products.

C. The original price was an equilibrium price because it was established in a free market.

D. At the original price, quantity supplied was greater than quantity demanded.

D. At the original price, quantity supplied was greater than quantity demanded.

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Answers (1)

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Honey · Answer 1

D. At the original price, quantity supplied was greater than quantity demanded.

Explanation:

The supply the first day was greater than quantity demanded. That is because, the price wasn't in equilibrium, it should be lower to increase the demanded quantity.

Because it was higher, this excess are sales the next day at reduce-price to find demand.

C. - if this was equilibrium, then it would not be excess of products neither shortage

B. - if there was a shortage, there will be no left-over of day-old bakery products.

A. - If quantity demanded exceed the supply offered it will be no left-over