Question

Locusts and drought destroy most of the wheat crops in many states across the Midwest of the United States. Since wheat flour is a major ingredient in bread, what do you think will happen to the price of bread?

(A) The bread supply will decrease which will decrease the price of bread.

(B) The bread supply will decrease which will increase the price of bread.

(C)The bread supply will increase which will decrease the price of bread.

(D)The bread supply will increase which will increase the price of bread.


the anwser is   The bread supply will decrease which will increase the price of bread. 

Answer 1

Answer: The answer is B

Answer 2

(B) The bread supply will decrease which will increase the price of bread.

Demand will stay consistent but with less product prices must go up to make up for the loss of sales. Businesses can also demand more money for a high demand item.