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

Question

Technological advances resulting in cheaper production of shredded wheat

An increase in wages

In increase in population

An increase in the price of wheat.

Answer 1

The supply of shredded wheat (the breakfast cereal) would increase due to technological advances resulting in cheaper production of shredded wheat.

Here's a brief explanation of each option:

1. Technological advances resulting in cheaper production of shredded wheat: This would lower production costs and incentivize producers to supply more shredded wheat, thus increasing supply.

2. An increase in wages: This would likely increase production costs for manufacturers, which could decrease the supply of shredded wheat, not increase it.

3. An increase in population: This would likely increase demand for breakfast cereals, including shredded wheat, but it does not directly affect the supply.

4. An increase in the price of wheat: Since wheat is a key input in producing shredded wheat, an increase in the price of wheat would result in higher production costs, which would likely decrease the supply of shredded wheat.

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