Bo bakes muffins that he sells at the local farmer's market. If he purchases a new convection oven that reduces the costs of baking muffins, the

A) supply of Bo's muffins will increase.
B) supply of Bo's muffins will decrease.
C) demand for Bo's muffins will increase.
D) demand for Bo's muffins will decrease.

Question

Nanci Carrera · Accepted Answer

Final Answer : A, Explanation :  A reduction in the costs of baking muffins, due to the new convection oven, makes it cheaper and possibly faster for Bo to produce muffins. This would likely increase the quantity of muffins he is willing and able to supply at any given price, hence increasing the supply of Bo's muffins.

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