Shifting the wheat supply curve to the right

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Reference no: EM131000860

Between 1950 and 2006, the price of wheat fell dramatically from $15.81 per bushel to $3.40 per bushel.

Suppose b/w 1950 and 2006, the supply of wheat increased substantially due to increases in productivity, shifting the wheat supply curve to the right.

With this supply shift, the amount by which the price of wheat falls will be larger the more _________ the demand for wheat. (elastic or inelastic)

Reference no: EM131000860

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