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 decrease, 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 decrease, 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

If the wages for wedding cake bakers decrease, some bakers might switch to making wedding cakes instead, reducing the supply of bread bakers. However, if the context implies that lower wages in a related field make bread baking more attractive, then supply could increase as more bakers enter the bread market.

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