Social Studies
Joie926
20

The graph below shows how the price of wheat varies with the demand quantity. Suppose that lower production costs increases the supply of wheat, such that more wheat is supplied at each price level. After the increase in supply, the equilibrium price _____. increases decreases stays the same

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shandi31

After the increase in supply, the equilibrium price decreases. This is where the law of supply and demand comes in. When costs are low for production, supply is abundant, and when supplies are abundant the prices are set at its minimum or goes lower. Consumers are enticed to buy wheat therefore increasing productivity of sales and the growth of the economy.

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