Assume a drought in the Great Plains reduces the supply of wheat.Since 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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A reduction in the supply of wheat would lead to an increase in its price. This increase in wheat price would then increase the cost of producing bread, leading to a decrease in the supply of bread. As bread becomes more expensive, consumers may switch to potatoes as a substitute, leading to an increase in the demand for potatoes. Therefore, the price of wheat would rise, the supply of bread would decrease, and the demand for potatoes would increase.

Assume a Drought in the Great Plains Reduces the Supply