Optimistic Outlook for Breakfast Sandwich Market
What do you expect to happen to the price of breakfast sandwiches as more workers return to the office? What will happen to the quantity of breakfast sandwiches that are sold?
Given the change in consumer behavior, how will the market for breakfast sandwiches react?
Answer:
When more workers return to the office and purchase breakfast sandwiches, the price of these sandwiches is likely to increase. The quantity of sandwiches sold is expected to increase as suppliers would likely produce more to meet the higher demand.
Analysis:
When more workers return to the office and resume purchasing breakfast on their way to work, we can expect the price of breakfast sandwiches to increase. As the demand for breakfast sandwiches rises due to more people buying them, suppliers may increase the prices to take advantage of the increased demand. However, it is also important to consider the quantity of breakfast sandwiches that will be sold.
With the increase in demand, suppliers would likely increase the quantity of sandwiches produced to meet the higher demand. This can be represented in a graph by a rightward shift of the supply curve, indicating an increase in quantity supplied.
Graph:
The graph would depict an upward shift of the demand curve due to the increase in demand. With the increase in quantity supplied (represented by a rightward shift of the supply curve), the equilibrium price might rise, while the quantity sold could increase or remain the same, depending on the magnitude of the demand increase.