Wheat is the main input in the production of flour.If the price of wheat decreases,then we would expect the
A)demand for flour to increase.
B)demand for flour to decrease.
C)supply of flour to increase.
D)supply of flour to decrease.

Question

Quizplus · Accepted Answer

A decrease in the price of wheat would lower the cost of production for flour. Lower production costs would encourage producers to increase their supply of flour to the market. Therefore, we would expect the supply of flour to increase. This would likely result in a decrease in the price of flour, which could lead to an increase in demand for flour.

Wheat Is the Main Input in the Production of Flour