If advances in technology make it possible for farmers to grow 25 percent more wheat per acre than they did in the past, the result would be an increase in the
A) supply of wheat because of declining costs of production
B) supply of wheat because of rising wheat prices
C) demand for wheat because of falling wheat prices.
D) quantity supplied of wheat because of greater willingness to sell wheat

Question

Quizplus · Accepted Answer

The increase in wheat production per acre due to technological advances would likely lead to a decrease in the costs of production, thus increasing the supply of wheat. This is because producers can now produce more at a lower cost, making them more willing to supply more at the same price levels.

If Advances in Technology Make It Possible for Farmers to Grow