Wheat is the main input into the production of flour.All things being equal, if the price of wheat decreases, what would be expected to happen in the flour market?

Question

Quizplus · Accepted Answer

If the price of wheat, the main input into the production of flour, decreases, it will lead to a decrease in the cost of production of flour. This will cause an increase in the quantity of flour supplied in the market, and hence the supply of flour will increase.

Wheat Is the Main Input into the Production of Flour