As the cost of resources goes up, producers ________ production, which drives prices ________.
A) increase; up
B) increase; down
C) decrease; up
D) decrease; down

Question

Quizplus · Accepted Answer

As the cost of resources increases, producers tend to decrease production due to higher production costs. This reduced supply, in turn, can drive prices up due to the decreased availability of the product.

As the Cost of Resources Goes Up, Producers ________ Production