Explanation: Here, the supply of wheat will decrease when there is an increase in the price of corn because producers will be more willing to produce and supply corn as corn will give higher revenue to them. All other situations will result in an increase in the supply of wheat or an increase in quantity supplied.
What causes a decrease in supply?
Factors that can cause a decrease in supply include higher production costs, producer expectations and events that disrupt supply . Higher production costs make supplying a product less profitable, resulting in firms being less willing to supply the good.
Which of the following would decrease the supply of wheat quizlet?
Which of the following would decrease the supply of wheat? An increase in the price of corn . You just studied 10 terms!
Which factor would cause a decrease in the supply of a good?
A decrease in supply means that producers plan to sell less of the good at each possible price . 2. Other factors affecting supply include technology, the prices of inputs, and the prices of alternative goods that could be produced.
How might the price of corn affect the supply of wheat?
1. As the price of corn falls, the supply of wheat will rise . ... As the price of corn rises, the supply of wheat will fall.
What will cause supply to increase?
changes in non-price factors that will cause an entire supply curve to shift (increasing or decreasing market supply); these include 1) the number of sellers in a market, 2) the level of technology used in a good’s production , 3) the prices of inputs used to produce a good, 4) the amount of government regulation, ...
Which of the following would most likely cause the supply of wheat to increase quizlet?
Which of the following would most likely cause the supply of wheat to increase? a decrease in the supply of automobiles , which is a shift to the left of the supply curve. the price of a good will eventually rise in response to an excess demand for that good. a rightward shift in the supply curve for microwave ovens.
Which of the following is likely to increase the supply of wheat?
Other things constant, which of the following is likely to increase the supply of wheat? increase in the quantity demanded of legal services .
What does an upward sloping supply curve mean?
Supply in a market can be depicted as an upward sloping supply curve that shows how the quantity supplied will respond to various prices over a period of time . Because businesses seek to increase revenue, when they expect to receive a higher price, they will produce more.
What are factors affecting supply?
- Price of the given Commodity:
- Prices of Other Goods:
- Prices of Factors of Production (inputs):
- State of Technology:
- Government Policy (Taxation Policy):
- Goals / Objectives of the firm:
What are the 5 factors that affect supply?
- A decrease in costs of production. This means business can supply more at each price. ...
- More firms. ...
- Investment in capacity. ...
- The profitability of alternative products. ...
- Related supply. ...
- Weather. ...
- Productivity of workers. ...
- Technological improvements.
What are the 7 factors that shift supply?
The seven factors which affect the changes of supply are as follows: (i) Natural Conditions (ii) Technical Progress (iii) Change in Factor Prices (iv) Transport Improvements (v) Calamities (vi) Monopolies (vii) Fiscal Policy.
What influences the price of wheat?
Many factors affect wheat prices including climate, yields, oil prices, lagged prices, and imports . In addition to gradually and consistently increasing global wheat demand, these market drivers are posited to impact world prices and, ultimately, food security.
Are wheat and corn substitutes or complements?
Wheat and corn are also substitutes in supply . An increase in the price of wheat will lead farmers whose land is well suited to producing either wheat or corn to substitute wheat for corn, thus increasing the quantity of wheat and decreasing the quantity of corn.
Who controls the price of corn?
The price of corn is largely determined by supply and demand . On the supply side, there are basically three sources of U.S. corn. The first source comes from leftover stocks from the previous year.
