Read this scenario:Gretchen opens a high-end bakery in a busy section of town. Customers pay top dollar for her quality baked goods. Just two months later, Emily opens a bakery across the street. She also sells baked goods but uses lower-quality ingredients and has a less appealing shop. Some of Gretchen's customers take their business to Emily's bakery because her prices are lower.Which Industrial Revolution-era system or movement is reflected in this scenario?A.RomanticismB.CapitalismC.Social criticismD.MarxismSUBMITarrow_backPREVIOUS
Question
Read this scenario:Gretchen opens a high-end bakery in a busy section of town. Customers pay top dollar for her quality baked goods. Just two months later, Emily opens a bakery across the street. She also sells baked goods but uses lower-quality ingredients and has a less appealing shop. Some of Gretchen's customers take their business to Emily's bakery because her prices are lower.Which Industrial Revolution-era system or movement is reflected in this scenario?A.RomanticismB.CapitalismC.Social criticismD.MarxismSUBMITarrow_backPREVIOUS
Solution
The scenario reflects B. Capitalism. This is because capitalism is an economic system where trade and industry are controlled by private owners for profit, rather than by the state. In this case, Gretchen and Emily are both private owners who are competing for profit in the same industry. Emily's decision to use lower-quality ingredients and offer lower prices is a common strategy in capitalism to attract customers.
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