Ask Question
BusinessBusiness
14 March, 06:50

Suppose the price of cherries decreases at the same time Mrs. Smith's introduces a new and better-tasting cherry pie that consumers love. How will these changes impact the quantity and price levels in the market for cherry pies? Quantity / Price Increase / Indeterminate Increase / Decrease Indeterminate / Decrease Decrease / Increase Decrease / Indeterminate

+1
Answers (1)
  1. 14 March, 06:57
    0
    Decrease / Indeterminate

    Explanation:

    In this scenario the price of cherries is lower so she can buy more to make pies. This increases the quantity she can produce.

    The new type of cherry pie that consumers like will increase the demand for it, so this also causes increase in quantity of cherry pies.

    With regards to the price we cannot determine if it will rise of decrease.

    Normally as quantity demanded for product increases the price will also increase. This allows the seller make more product.

    On the other hand a major input that is cherries has decreased in price. So cost of production is lower. This should result in lower price of cherry pies.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose the price of cherries decreases at the same time Mrs. Smith's introduces a new and better-tasting cherry pie that consumers love. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Richard won a lottery that will pay him $460000 at the end of each of the next twenty years. Assuming an appropriate interest rate is 8% compounded annually, what is the present value of this amount?
Answers (1)
Joe runs a restaurant. He pays his employees $200,000 per year. His ingredients cost him $50,000 per year. Prior to running his restaurant, Joe was a lawyer earning $150,000 per year.
Answers (1)
Which of the following is a transportation job? A - Forest and conservation worker B - Events planner C - Air traffic controller D - Industrial engineer
Answers (1)
What OSHA Act requires employers to "furnish to each of his/her employees employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his/her employees"?
Answers (2)
Mr. Mercury, Inc. bought 25% of Hermes Corp.'s outstanding common stock on January 2, 2018, for $500,000. The carrying amount of Hermes' net assets at the purchase date totaled $1,500,000.
Answers (1)
New Questions in Business
Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines.
Answers (1)
Use the following example to answer the following questions: Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.
Answers (1)
Barr Corp. started a long-term construction project in 20X0. The following data relate to this project: Contract price $4,200,000 Costs incurred in 20X0 $1,750,000 Estimated costs to complete $1,750,000 Progress billings $900,000 Collections on
Answers (1)
Bob contributed a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 subject to a mortgage of $120,000 in exchange for a 30 percent interest in the Alpha Partnership. Alpha will assume the mortgage on the building.
Answers (1)
Nareen is single, 68 years old, and reports the following in 2018: a. $12,000 alimony received (divorced in 2010) b. $82,520 Schedule C profit c. $3,500 SEP (self-employed pension) plan contribution d. $7,150 qualified dividends e.
Answers (1)
Home » Business » Suppose the price of cherries decreases at the same time Mrs. Smith's introduces a new and better-tasting cherry pie that consumers love.
Sign Up Forgot Password?