Answer to Question #183212 in Microeconomics for glory

Question

Ordered delivery also wastes time.

The bread is very nice, and customers are always willing to go buy the bread. But the conditions on Saturdays make some customers going for alternatives. Jane goes there on Saturday, amidst the frustrations, the muttering to get her bread. She always lives the placed upset for her favorite bread. Jane has been complaining to the baker to do something about it. She has also commented on the problem to you as her friend. And another problem: The baker has telling her faithful customers of raising the price of bread from GHS 6 to GHS 8, something Jane is not so happy about.

1.As an economist and a friend to Jane, what advice will you give to the baker?

2.Explain the three (3) stages of production to the baker.

3.Explain the forecast of the demand for bread when price is increased

Answer 1

1. As an economist and a friend to Jane I can advice either not buy bread on Saturday, or find some alternative place with lower demand on Saturday.

2. The 3 stages of production are characterised by the slope and form of the overall product curve. the primary stage is characterised by a progressively positive slope, the second stage by a decreasingly positive slope, and also the third stage by a negative slope.

3. The quantity demanded of bread will decrease when price increases.