Wheat is the main input in the production of flour.All else equal,if the price of wheat increases,what would we expect

Question

Quizplus · Accepted Answer

If the price of wheat increases, it will increase the cost of producing flour. Consequently, this will lead to a decrease in production and an increase in the price of flour, resulting in a decrease in the supply of flour. Therefore, we would expect the supply of flour to decrease.

Wheat Is the Main Input in the Production of Flour