Figure 18-6
-Refer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries. If the wages paid to wedding cake bakers increase, what happens in the market for bread bakers?
A)Demand increases from D1 to D2.
B)Demand decreases from D2 to D1.
C)Supply increases from S1 to S2.
D)Supply decreases from S2 to S1.

Question

Figure 18-6 
-Refer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries. If the wages paid to wedding cake bakers increase, what happens in the market for bread bakers?
A)Demand increases from D1 to D2. 
B)Demand decreases from D2 to D1. 
C)Supply increases from S1 to S2. 
D)Supply decreases from S2 to S1.

Quizplus · Accepted Answer

The wages paid to wedding cake bakers is not directly related to the demand for breads and pastries. Therefore, there is no reason for demand to increase or decrease. However, if wedding cake bakers are paid higher wages, some bakers who make breads and pastries may switch to making wedding cakes instead. This would decrease the supply of bread bakers, shifting the supply curve to the left from S2 to S1.

Figure 18-6 -Refer to Figure 18-6. the Graph Above Illustrates the Market