Based on the available options the most likely consequences of lowering prices of fresh baked goods by 10% are options D. and F.
The consequences of lowering prices of fresh baked goods by 10% can be analyzed as follows:
A. The supply of fresh baked goods will increase: This is not necessarily true. Lowering prices may encourage bakery owners to produce and supply more fresh baked goods to meet the increased demand, but it relies on the particular conditions and the elasticity of supply.
B. The quantity supplied of fresh baked goods will decrease: This is unlikely to happen if the price reduction is aimed at increasing sales. Lower prices generally motivate suppliers to increase the quantity supplied.
C. The supply of fresh baked goods will decrease: This is not likely to occur as a result of reducing prices. Lower prices typically lead to an increase in supply, not a reduction.
D. Demand for processed baked goods will decrease: This is possible. If fresh baked goods become more inexpensive due to the price reduction, consumers may switch from processed baked goods to fresh ones, leading to a reduction in demand for processed baked goods.
E. The demand for fresh baked goods will not change: This is unlikely. Lowering prices generally stimulates demand, as it makes the product more desirable and affordable to consumers.
F. The demand for fresh baked goods will increase: This is a possible consequence. Lowering prices can lead to a boost in demand for fresh baked goods, as it makes them more appealing and available to consumers.
Based on the given options, the most likely consequences of lowering prices of fresh baked goods by 10% are D. Demand for processed baked goods will decrease, and F. The demand for fresh baked goods will increase.