Suppose that the price of bread rises.This rise could be the result of
A) a decrease in the supply of bread.
B) an increase in the supply of bread.
C) a decrease in the demand for bread.
D) Both answers A and C are correct.
E) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

A decrease in the supply of bread would lead to a rise in its price due to the basic economic principle of supply and demand. When supply decreases and demand remains constant, prices tend to increase.

Suppose That the Price of Bread Rises