An increase in the cost of raw materials in the mining of gold will _____ the _____ automobiles.

Question

Quizplus · Accepted Answer

An increase in the cost of raw materials in the mining of gold will increase the cost of production for automobiles. This increase in production cost will lead to a decrease in the supply of automobiles, as manufacturers will reduce their production levels in response to the higher costs. Therefore, D – decrease in the supply of automobiles is the best choice.

An Increase in the Cost of Raw Materials in the Mining