To determine which option would cause the supply of shredded wheat to increase, we need to consider the factors that influence supply. Generally, an increase in supply occurs when the costs of production decrease or when there is an increase in the ability or willingness to produce the good.
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An increase in consumers' preference for wheat: This would likely increase demand for shredded wheat, not supply.
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An increase in the price of wheat: This would increase production costs for shredded wheat producers, likely causing a decrease in supply.
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A decrease in the price of wheat: This would lower production costs for shredded wheat, which could encourage producers to supply more, thus increasing the supply.
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An increase in wages: This generally increases production costs and could lead to a decrease in supply as producers may reduce their output due to higher labor costs.
Therefore, the correct answer is a decrease in the price of wheat, as it would lower production costs and encourage an increase in the supply of shredded wheat.
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