Consider the market for bread.If the price of wheat rises,then the
A) demand curve for bread shifts leftward.
B) supply curve of bread shifts leftward.
C) price of bread falls.
D) equilibrium quantity of bread increases.
E) demand curve for bread shifts rightward.

Question

Quizplus · Accepted Answer

An increase in the price of wheat, a key input in bread production, will increase the cost of producing bread. This will cause a leftward shift in the supply curve for bread, resulting in a higher equilibrium price and a lower equilibrium quantity of bread.

Consider the Market for Bread