Suppose the price of oil has recently increased, making it more expensive to manufacture ride-on lawn mowers. This oil price increase also makes it more expensive to run a ride-on mower. When the price of oil increases, the demand for ride-on mowers _____ and the supply of ride-on mowers _____.
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; increases

Question

Quizplus · Accepted Answer

The demand for ride-on mowers decreases because it becomes more expensive to operate them, and the supply decreases because it becomes more expensive to manufacture them.

Suppose the Price of Oil Has Recently Increased, Making It