Which of the following would cause the supply of shredded wheat (the breakfast cereal) to increase?

An increase in wages

In increase in population

An increase in the price of wheat.

Technological advances resulting in cheaper production of shredded wheat

1 answer

The factor that would cause the supply of shredded wheat to increase is:

Technological advances resulting in cheaper production of shredded wheat.

This is because improvements in technology typically lead to more efficient production processes, reducing production costs and allowing suppliers to produce more at the same price or the same amount at a lower price.

The other options would have a different impact:

  • An increase in wages would likely lead to increased production costs, potentially decreasing supply.
  • An increase in population could increase demand for shredded wheat, rather than supply.
  • An increase in the price of wheat (a key input) would likely raise production costs, potentially decreasing supply.

Therefore, the correct answer is the technological advances resulting in cheaper production.