Higher wages in the South African car industry would __________ the prices of South African-made cars and __________ the quantity traded.

Question

Quizplus · Accepted Answer

If wages in the South African car industry increase, this will increase the cost of production for South African-made cars, which will likely lead to an increase in the prices of these cars. Higher prices will lower the quantity of cars traded as consumers may be less willing to purchase at a higher price. Therefore, choice C is the best answer.

Higher Wages in the South African Car Industry Would __________