A change in flour prices shifts the supply curve for bread.

Question

Quizplus · Accepted Answer

The cost of flour, a key input in bread production, directly affects the production costs for bread. If flour prices increase, it becomes more expensive to produce bread, leading to a decrease in supply (a leftward shift of the supply curve). Conversely, if flour prices decrease, the cost of producing bread lowers, potentially increasing the supply of bread (a rightward shift of the supply curve).

A Change in Flour Prices Shifts the Supply Curve for Bread