Analyzing Economic Principles
Read the passage and then answer the question.
In the third century BCE, the ancient Egyptians began
growing a new type of wheat. It required more water than
other types of wheat. To irrigate the new wheat,
Egyptians built new canals to draw more water from the
Nile River. This allowed them to successfully grow the
new wheat and also charge a higher price for it.
Why would the Egyptians have charged a higher price
for the new type of wheat?
There was a surplus of wheat.
O Demand for wheat became lower.
O Demand for water became higher.
The new canals increased production cost.
) Intro
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