Dan owns one of the many bakeries in New York City.Which of the following events will lead to an increase in Dan's demand for the services of bakers? (i) The price of muffins increases.(Muffins are Dan's specialty.)
(ii) Dan adds three new ovens to the kitchen area to help the bakers work faster.
(iii) Local bakers form a union to protect themselves from low wages.

Question

Dan owns one of the many bakeries in New York City.Which of the following events will lead to an increase in Dan's demand for the services of bakers? (i)	The price of muffins increases.(Muffins are Dan's specialty.)
(ii)	Dan adds three new ovens to the kitchen area to help the bakers work faster.
(iii)	Local bakers form a union to protect themselves from low wages.

Quizplus · Accepted Answer

An increase in the price of muffins (i) would likely increase demand for muffins, thus requiring more bakers. Adding new ovens (ii) increases production capacity, potentially increasing the need for more bakers to utilize the new equipment.

Dan Owns One of the Many Bakeries in New York