--%>

Problem related to supply and demand

Assume a drought in the Great Plains reduces the supply of wheat. Noting that wheat is a basic ingredient in the production of bread and that potatoes are a consumer substitute for bread, we would expect the price of wheat to: A) rise, the supply of bread to increase, and the demand for potatoes to increase. B) rise, the supply of bread to decrease, and the demand for potatoes to increase. C) rise, the supply of bread to decrease, and the demand for potatoes to decrease. D) fall, the supply of bread to increase, and the demand for potatoes to increase.

   Related Questions in Microeconomics

  • Q : Function of negative economic profits A

    A function of negative economic profits is to: (w) attract new firms into the industry. (x) keep competition within. (y) signal to other firms to invest their capital into this industry. (z) correct resource allocations by forcing firms generating los

  • Q : Consumer behaviour Graphical

    Graphical representation of relationship between MPC and multiplier?

  • Q : Marginal revenue curve A monopolist

    A monopolist which does not price discriminate has a marginal revenue curve which slopes down faster than does the demand curve the monopolist faces since: (1) economies of scale are significant. (2) selling more requires lowering the

  • Q : Why is the ATC bigger than AVC Why is

    Why is the ATC bigger than AVC? Answer: ATC is bigger than AVC since ATC comprises AVC and AFC

  • Q : Labor markets gain maximization When,

    When, after hiring the very last worker, the organization’s profit is similar as it was before the last worker was hired, then the firm must: (p) Hire more workers to raise the profit. (q) Layoff some workers to raise the profit. (r) Not appoint any more workers

  • Q : Laws and Regulations-caveat emptor I

    I have a problem in economics on Laws and Regulations-caveat emptor. Please help me in the following question. The Latin phrase which means ‘let the buyer beware is: (1) Caveat emptor. (2) Laissez-faire. (3) Fiat justitia and ruat coelum. (4) Epluribus unum. (5)

  • Q : NOT price discriminate by monopoly Into

    Into equilibrium, a monopoly which does NOT price discriminate will tend to produce: (w) the socially optimal rate of output. (x) a level of output where price exceeds marginal social cost. (y) lower output at lower prices than a competitive market. (

  • Q : Change in Supply versus change in

    Assume that a screen at the front of this room exhibits a graph of supply curve for ice-cream. The shift of this supply curve away from the center of our Earth would replicate: (i) A raise in the quantity of ice-cream demanded. (ii) A reduction in the supply of ice-cr

  • Q : Price elasticity of demand I have a

    I have a problem related to price elasticity of demand. The question is illustrated as "After the price of movie tickets rose, I spent less money on movie tickets." What can you infer regarding my price elasticity of demand? 

  • Q : Change of tastes and preferences in

    Can someone please help me in finding out the accurate answer from the following question. Most of the mass advertising is intended to influence market demand primarily by: (1) Providing full detailed information regarding products. (2) Decreasing pro