The graph below shows how the price of wheat varies with the demand quantity
Decrease Supply
...
Mathematics, 21.01.2021 01:00 jessezarate4513
The graph below shows how the price of wheat varies with the demand quantity
Decrease Supply
New
Supply
Supply
SS
$4
Demand
400 800
Quantity
Suppose that an increase in production costs decreases the supply of wheat, such that less wheat is supplied at each
price level. The new equilibrium price (after the decrease in supply) is
$4
$5
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