Question

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 price (after the decrease in supply) is ____

a $4
b $5

Answer 1

The answer is: a.- $ 4.

Step-by-step explanation:

All that is a decrease, as its word indicates, is that it decreases, that is, it is less, like all supply and demand, if you raise the price, it usually happens that the offer decreases, and therefore the price in balance would be $ 4.

The answer is: a.- $ 4.

Answer 2

The answer to this question is the letter "A. $ 4".

Suppose that an increase in production costs decreases in the supply of wheat, such that less wheat is supplied at each price level. The new equilibrium (after the decrease in the supply) is $ 4.