If the supply of wheat declines, what is likely to happen to the supply of bread?

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Study for the University of Central Florida ECO2023 Principles of Microeconomics Final. Prepare with multiple choice questions, flashcards with helpful hints and explanations. Ace your exam!

When the supply of wheat declines, the production cost for bread rises, given that wheat is a key input in its production. As fewer resources are available to make wheat, bakers and bread producers face constraints on their ability to produce bread. Consequently, this reduction in the availability of wheat leads to a decrease in the overall supply of bread in the market. This relationship highlights the principle of derived demand, where the demand for one good (in this case, bread) is dependent on the demand for another (wheat). When the supply of the primary input decreases, it directly affects the supply of the final product, resulting in a decrease in the supply of bread.

The other choices do not account for the direct impact that a decline in wheat supply has on bread production, leading to the conclusion that there is a clear and direct correlation between the two markets.