Figure 4-10
-Refer to Figure 4-10. Which of the following movements would illustrate the effect of an improved oven that allows bakers to produce scones in less time on the market for scones?

Question

Figure 4-10 
-Refer to Figure 4-10. Which of the following movements would illustrate the effect of an improved oven that allows bakers to produce scones in less time on the market for scones?

Quizplus · Accepted Answer

The improved oven allows bakers to produce scones in less time, which means that the supply of scones will increase. This will shift the supply curve to the right, from S1 to S2. As a result, the equilibrium price will decrease from P1 to P2, and the equilibrium quantity will increase from Q1 to Q2. This is represented by the movement from point A to point B.

Figure 4-10 -Refer to Figure 4-10. Which of the Following Movements Would