When an increase in the price of wheat,an important ingredient in the production of bread,happens at the same time as an increase in the number of people consuming bread:

Question

Quizplus · Accepted Answer

When the price of a key ingredient in the production of bread (wheat) increases, it will lead to an increase in the cost of production for bread, which will cause a shift in the supply curve to the left. As a result, the equilibrium price will increase, but the equilibrium quantity may decrease, increase, or stay the same, depending on the extent to which the increase in price affects the consumption habits of bread by consumers. However, if the number of people consuming bread increases at the same time, then it could counterbalance the decrease in quantity and potentially lead to an increase in the equilibrium quantity as well.

When an Increase in the Price of Wheat,an Important Ingredient