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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. After the increase in supply, the equilibrium price _____. increases decreases stays the same

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After the increase in supply, the equilibrium price decreases. This is where the law of supply and demand comes in. When costs are low for production, supply is abundant, and when supplies are abundant the prices are set at its minimum or goes lower. Consumers are enticed to buy wheat therefore increasing productivity of sales and the growth of the economy.

When the supply of wheat rises as a result of lower production costs, the equilibrium price of wheat falls.

What is the effect of a decrease in the supply of wheat?

When the supply of wheat increases, the supply curve shifts to the right while the demand curve remains unchanged. As a result, there wuld be decrease in the price of wheat and an increase in the equilibrium quantity of wheat.

To learn more about supply, please check: https://brainly.com/question/18117726

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