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How will the following changes affect the market price of wheat flour (assuming that the market is initially in equilibrium)? In each case, illustrate with
How will the following changes affect the market price of wheat flour (assuming that the market is initially in equilibrium)? In each case, illustrate with a diagram what happens to the demand and/or supply curves and, as result, what happens to the equilibrium price and equilibrium quantity.
(a) People consume more bread;
(b) The discovery of a new cheaper way of milling flour;
(c) The prices of other grains rise;
(d) Rice and potatoes fall in price
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