What is the expected result on the price of wheat if there is a decline in its supply?

When the supply of wheat declines, the expected result is an increase in its price. This outcome is based on the fundamental principles of supply and demand.

When there is a reduction in supply, fewer units of wheat are available in the market. Assuming that demand remains constant, this scarcity means that consumers are competing for a limited quantity of wheat. As a result, buyers will be willing to pay higher prices to secure their desired amount of the commodity. The interaction of reduced supply and constant demand leads to upward pressure on the price.

In economic terms, when the supply curve shifts to the left (indicating a decrease in supply), the equilibrium price (where supply equals demand) must rise to reach a new equilibrium. Thus, the correct answer reflects the basic economic principle that a decrease in supply, with constant demand, leads to higher prices.