Assume a drought in the Great Plains reduces the supply of wheat. Noting that wheat is a basic ingredient in the production of bread, and potatoes are a consumer substitute for bread, we would expect the price of wheat to

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The reduction in the supply of wheat will lead to an increase in the price of wheat, which will result in a decrease in the supply of bread (as it becomes more expensive to produce), causing an increase in the price of bread. As bread becomes more expensive, consumers will switch to potatoes as a substitute, thus increasing the demand for potatoes.

Assume a Drought in the Great Plains Reduces the Supply