GeeGee's is a community-based bakery known for its scrumptious tea cakes. The recipe calls for expensive spices imported from Asia. Recently, the cost of these spices has risen dramatically, leading GeeGee's to consider increasing its prices. What could GeeGee's management perform in order to analyze how this change would affect consumer choices?
A) a transformational economic analysis
B) a microeconomic analysis
C) a structural analysis
D) a macroeconomic analysis

Question

Quizplus · Accepted Answer

A microeconomic analysis would examine how consumers would respond to a change in prices for a specific product, such as GeeGee's tea cakes. This analysis would look at factors such as consumer demand, elasticity of demand, and the price points of competitors in the local market.

GeeGee's Is a Community-Based Bakery Known for Its Scrumptious Tea