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Assume a drought has reduced wheat harvest drastically.
Using demand and supply analysis and graphs, explain how this will impact on the equilibrium price and quantity
(a) wheat flour
(b) millet,assuming it is a substitute for wheat
Answer
If a drought has reduced wheat harvest drastically, then the supply of wheat will decrease and the demand will stay the same.
The supply and demand of millet will increase.
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Virtual Teaching Assistant: Colleen R.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017
This 37 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 152 views.