Question

Which of the following would decrease the supply of wheat?

a) Technological advancements in farming
b) Increased subsidies for wheat production
c) Expansion of wheat farms
d) Introduction of a new pest-resistant wheat variety

Answer 1

None of the given options would decrease the supply of wheat; they all contribute to an increase in supply. Decreased supply is typically associated with factors like higher production costs, loss of technology, or shifts to other crops.

Step-by-step explanation:

You've asked which of the following would decrease the supply of wheat. Let's look at each option and see how they would affect supply:

• Technological advancements in farming: This would actually increase supply because it allows farmers to produce at a lower cost, thereby shifting the supply curve to the right.
• Increased subsidies for wheat production: This would also increase supply as it lowers production costs for farmers.
• Expansion of wheat farms: Expanding farms means more wheat can be grown, so this too would increase the supply.
• Introduction of a new pest-resistant wheat variety: This innovation would certainly increase supply since it results in higher yields by reducing crop losses due to pests.

None of the options listed would decrease the supply of wheat. Situations that could lead to a decreased supply include increased input costs, loss of technology, natural disasters, or a shift in production to alternative crops due to changes in market prices.