Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a Bagel _{-------------}and the equilibrium quantity_{-------------} .

Question

Quizplus · Accepted Answer

When the price of flour increases, the cost of producing bagels rises, leading to a decrease in supply. This results in a higher equilibrium price and a lower equilibrium quantity for bagels.

Suppose That the Price of Flour Used to Produce Bagels