Question
In a small town, a popular bakery sells cupcakes for $2 each. Suddenly, a new bakery opens across the street and begins selling cupcakes for $1.50. How will demand likely change for each bakery?(1 point)
Responses
Demand will increase for both bakeries equally
Demand will increase for both bakeries equally
Demand will decrease for both bakeries
Demand will decrease for both bakeries
Demand will increase for the new bakery and decrease for the original bakery
Demand will increase for the new bakery and decrease for the original bakery
Demand will stay the same for both bakeries
Responses
Demand will increase for both bakeries equally
Demand will increase for both bakeries equally
Demand will decrease for both bakeries
Demand will decrease for both bakeries
Demand will increase for the new bakery and decrease for the original bakery
Demand will increase for the new bakery and decrease for the original bakery
Demand will stay the same for both bakeries
Answers
GPT-4o mini
The most likely response is:
**Demand will increase for the new bakery and decrease for the original bakery.**
As the new bakery offers cupcakes at a lower price, it is likely to attract customers who are looking for a better deal, leading to increased demand for the new bakery's products while reducing the demand for the original bakery's higher-priced cupcakes.
**Demand will increase for the new bakery and decrease for the original bakery.**
As the new bakery offers cupcakes at a lower price, it is likely to attract customers who are looking for a better deal, leading to increased demand for the new bakery's products while reducing the demand for the original bakery's higher-priced cupcakes.