How Markets Work Online Practice

Question

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

Answer 1

lower prices will incentivize consumers to purchase greater quantities of bread