A drought that reduces wheat production is a negative supply shock.

Name: A drought that reduces wheat production is a negative supply shock.
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This is because a drought, which reduces the amount of wheat that can be produced, will shift the supply curve for wheat to the left (decrease in supply), leading to an increase in the equilibrium price and a decrease in the equilibrium quantity. This is a negative supply shock as it reduces the availability of the good and increases its price.

A Drought That Reduces Wheat Production Is a Negative Supply