You notice that your grocery store always has day-old bakery products at a reduced price. Why might that be?
A)At the original price, the quantity demanded was greater than the quantity supplied.
B)At the original price, there was a shortage of bakery products.
C)The original price was an equilibrium price because it was established in a free market.
D)At the original price, quantity supplied was greater than quantity demanded.

Question

Quizplus · Accepted Answer

The fact that the grocery store has day-old bakery products at a reduced price suggests that at the original price, the quantity supplied was greater than the quantity demanded, resulting in an excess supply of bakery products. This excess supply likely resulted from overproduction by the bakery or lower than expected demand from customers. To avoid waste and recoup some of the costs, the grocery store reduces the price of the bakery products, making them more appealing to customers.

You Notice That Your Grocery Store Always Has Day-Old Bakery