1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elza [17]
3 years ago
14

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 quantity (after the decrease in supply) is _____.

History
2 answers:
den301095 [7]3 years ago
7 0

The correct answer is: "The new equilibrium quantity (after the decrease in supply) is SMALLER".

A supply function represents the quantity of a certain good or service that producers are willing to offer at different price levels. The law of supply states that there is an direct relationship between price and quantity supply (ceteris paribus, hence, given that the rest remains equal).

In this case another factor intervenes, an increase in the costs of production. This scenario shifts the supply curve to the left (as the graph attached shows). The consequences of the shift on the equilibrium point (intersection between demand and supply curves), are <u>the increase in the equilibrium price and the decrease in the equilibrium quantity . </u>

Masteriza [31]3 years ago
6 0

The exercise gives us the information that wheat producers will supply a different amount at each price level.

In economic theory, the supply and demand for a good are adjustable by its price. For example, if price goes up, more producers will offer wheat, but consumers will buy less. With the fall in demand, the price of wheat also lowers.

The same reasoning can be used when increasing the cost of production leads to a decrease in the price of wheat. Demand will adjust to price. As there will be different levels of price, demand behavior will also be varied, up to balance.

For example, the producer initially offered 100kg of wheat at a price of $ 10. If the cost of production has increased, the producer will have two options: to increase the price or to reduce the supply. In the exercise, he prefers to decrease supply. Let's assume that the offer falls to 30kg at a price of $ 10. There will be a choked demand needing wheat.

Thus, with each price increase the producer will offer more. Using hypothetical examples:

If he charges $ 12, he can increase the offer to 60kg

If you charge $ 15,he can increase the offer to 120kg

If you charge $ 50,he can increase the offer to 1000kg

What will happen to the demand in these cases? It will fit the offer. Some consumers will buy when the price is $ 12. Then fewer consumers will buy for $ 15. But if it charges $ 50, maybe no consumer buys! This will cause price decrease, as explained in the Law of Supply and Demand.

Therefore, demand and supply are adjustable. For different prices, there will be different demands.

You might be interested in
In what year did the Norman invasion begin?
dlinn [17]
The Norman conquest of England was the 11th-century invasion and occupation of England by an army of Norman, Breton, and French soldiers led by Duke William II of Normandy, later styled William the Conqueror.Start date: 1066
5 0
3 years ago
Read 2 more answers
Can someone help me please
STALIN [3.7K]

Answer:

I think it is very possible that some black people could have been more wealthy than the poor southern whites and they wanted revenge because they supported the idea that whites are more superior than blacks (which, by the way, I do not)

Explanation:

Hope this helps :)

4 0
3 years ago
Read 2 more answers
Who is credited with putting the concept of using mass-produced interchangeable parts into practice? DeWitt Clinton Eli Whitney
Bumek [7]
Eli Whitney is credited with putting the concept of using mass-produced interchangeable parts into practice. He came up with this concept during a war, when he used these parts to create guns.
5 0
3 years ago
Identify the features of the Centaur
Elden [556K]

The top half is human and the bottom half is a horse.

4 0
3 years ago
Miller’s approach in designing this poster is best described as negative; Miller wanted Americans to join the war out of fear of
antiseptic1488 [7]

The best description of Miller’s approach in designing this poster is:

  • Negative; Miller wanted to join the war out of fear of the Nazis

<h3>What is a Poster?</h3>

This refers to the use of graphics which includes, drawings, illustrations and writing to convey a message to people.

With this in mind, we can see that from the complete text, Miller decided to design a poster and this was done because he was afraid of the Nazis and that was why he wanted to join the war, so his emotions and intentions can be said to be negative.

Read more about poster here:
brainly.com/question/4251480

8 0
2 years ago
Other questions:
  • Is Christopher Columbus a good guy or a bad guy? Explain with details and at least 3 reasons to support your evidence. Thanks!
    13·2 answers
  • What combat advantage did Spanish conquistadores have over native peoples
    6·1 answer
  • Which accurately describes the impact of the Catholic Church on medieval politics and government? (Select all that apply.)
    15·1 answer
  • Which of the following was a result of the Magna Carta
    13·1 answer
  • 25 POINTS!!
    15·2 answers
  • How many signers were there for the Declaration of Independence
    12·2 answers
  • In eastern roman empire, was also called the
    11·1 answer
  • What is war communism and who came up with the idea?<br>ASAP PLEASE HELP!!!!​
    6·2 answers
  • Which individual would have most likely supported the Democratic-Republican party in the late 1700s? a wealthy merchant in Bosto
    7·1 answer
  • What was the reason for the Constitutional Convention? (5 points)
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!