Question

Suppose that fertilizerfertilizer is necessary to produce wheatwheat. if the price of fertilizerfertilizer fallsfalls​, the supply curve of

Answer 1

Answer: Shift to the right

Explanation:

Fertilizers are an important input in wheat production. When the price of fertilizers fall, it leads to a decrease in cost of producing wheat. Thus, producers will supply more wheat in the market. As a result the supply curve for wheat will shift to the right leading to a fall in the price of wheat and an increase in the quantity of wheat sold in the market.