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Q 3. d) King's Bread Shop raises its prices and blames it on the rising flour costs. The wholesale price of flour has risen nearly 25% in the last 6 months due to COVID-19. "There's a lot of flour in making all types of bread" notes by a food analyst in the media. The price of bread has risen by 40% while the sales have dropped by 15%. Q 3. di (1 mark) Is flour a fixed factor of production or a variable factor of production? Q 3. d ii (2 mark) Describe how the increase in the price of flour changes King's Bread shop's short- run cost curves such as the average fixed cost (AFC), average variable cost (AVC). marginal cost (MC] and the average total cost (ATC)