Flour is the main input in the production of bread. All else equal, if the price of flour decreases, what would we expect?

Question

Quizplus · Accepted Answer

A decrease in the price of flour would lead to an increase in the supply of bread. This is because the cost of producing bread has decreased, making it more profitable for bread producers to sell more bread at the same price or even lower price, increasing the supply of bread.

Flour Is the Main Input in the Production of Bread