Steel producers offer to sell steel to Canadian auto producers at a much lower price than in the past. What would one expect to be the result of this?

Question

Quizplus · Accepted Answer

When the cost of steel decreases, it becomes cheaper for auto producers to manufacture cars. This can lead to an increase in the supply of automobiles as producers are able to produce more at a lower cost.

Steel Producers Offer to Sell Steel to Canadian Auto Producers