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Rufina [12.5K]
3 years ago
15

V. Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect:

Business
1 answer:
Murrr4er [49]3 years ago
6 0

Answer:

3. Supply of flour to increase.

Explanation:

The situation above is showing a<em> direct proportional relationship</em> between the "wheat," as a main ingredient of flour, and the flour itself.

If the price of wheat <em>decreases</em>, <u>suppliers will be interested in buying more of it in order to produce more quantities of flour at a </u><em><u>lower cost </u></em>because it will more likely lead to a<em><u> higher profit</u></em>. This will, therefore, increase the supply of flour in the market.

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