The supply of cars will increase if the price of steel, an input used in the production of cars, reduces.

Name: The supply of cars will increase if the price of steel, an input used in the production of cars, reduces.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the price of steel reduces, the cost of production for cars will decrease, thereby allowing car manufacturers to lower the price of cars or produce more cars for the same price. This will increase the supply of cars in the market.

The Supply of Cars Will Increase If the Price of Steel