If the price of floor rises, then bread

Assessment: WAEC SSCE - Economics - 2015 (Objective) Subject: Economics

Question 1 Report

If the price of floor rises, then bread

Answer Details
If the price of floor rises, it means the cost of producing bread goes up because flour is one of the ingredients used to make bread. As a result, suppliers of bread may have to pay more for flour which will cause the supply curve to shift to the left. This means there will be less bread available in the market at the same price. On the other hand, if the price of bread remains the same, consumers may not be able to afford to buy as much bread because the cost of producing it has gone up. This will cause the demand curve to shift to the left as well. The combination of a leftward shift in both supply and demand curves will result in a decrease in the quantity of bread bought and sold in the market, and a potential increase in the price of bread. In summary, if the price of flour rises, the supply curve for bread will shift to the left, and this could lead to an increase in the price of bread due to a decrease in the quantity supplied and demanded.

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