Which of the following could be responsible for an increase in the price of wheat?
A)an increase in the supply of wheat
B)an increase in the demand for wheat
C)a decrease in the demand for wheat
D)a simultaneous increase in supply and decrease in demand for wheat

Question

Which of the following could be responsible for an increase in the price of wheat?
A)​an increase in the supply of wheat
B)​an increase in the demand for wheat
C)​a decrease in the demand for wheat
D)​a simultaneous increase in supply and decrease in demand for wheat

Quizplus · Accepted Answer

An increase in demand for wheat will result in a higher price, as buyers are willing to pay more for the same amount of wheat. an Increase in supply of wheat, Option (A), would actually cause the price to decrease as there is more wheat available than people want to buy. A decrease in demand, Option (C), would cause a decrease in price, as there are fewer people willing to purchase wheat. Option (D) is not logically coherent, as an increase in supply and a decrease in demand would cause opposite effects on price, making it unclear how the price would be impacted as a result.

Which of the Following Could Be Responsible for an Increase