Other things constant, what will be the effect of a decrease in the price of fertilizer on the market for wheat?
A) an increase the supply of wheat
B) an increase the demand for wheat
C) a decrease the supply of wheat
D) a decrease the demand for wheat

Question

Quizplus · Accepted Answer

A decrease in the price of fertilizer would lead to a decrease in the cost of production for wheat farmers. This would lead to an increase in the supply of wheat, as farmers would be able to produce more wheat at a lower cost. Therefore, the correct choice is A, an increase in supply.

Other Things Constant, What Will Be the Effect of a Decrease