Question

The market for breakfast cereal is currently in equilibrium. Suddenly there is a storm that destroys the wheat that farmers had been growing for the cereal manufacturer. What will happen to the cereal market after the storm?

a) Demand will decrease.
b) Supply will increase.
c) Demand will increase.
d) Supply will decrease.

Answer 1

C

Step-by-step explanation:

It will need to decrease Because the wheat is gone, so it decreases the amount of cereal made.