Question

The graph below shows how the price of wheat varies with the demand quantity. Suppose that lower production costs increases the supply of wheat, such that more wheat is supplied at each price level. The new equilibrium price (after the increase in supply) is _____.
https://itasca.owschools.com/media/o_eco_2016/3/img_increasesupply_graph1.gif

Answer 1

Lower production costs increases the supply of wheat, such that more wheat is supplied at each price level. The new equilibrium price (after the increase in supply) is _lower at $3_ .