Which of the following is an example of how supply affects price?

D. A bakery produced eight dozen cookies, but an hour before closing only 6.5 dozen had sold. The bakery offered the remaining cookies at half price.


Oversupply leads to price reduction. There was a surplus of 1.5 dozen cookies that had not been sold by closing time. In order to attract customers to buy them (or else all 1.5 dozen would have gone to waste), the bakery needed to reduce the price of the remaining cookies.

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