If wheat farmers have a good year, with higher than expected yields, ceteris paribus, then:

Question

Quizplus · Accepted Answer

The law of supply and demand indicates that if the supply of wheat increases, with demand remaining constant, the price of wheat will decrease. Therefore, if wheat farmers have a good year with higher than expected yields, ceteris paribus, there will be an increase in the supply of wheat, which will lead to a decrease in the price of wheat.

If Wheat Farmers Have a Good Year, with Higher Than