Suppose a new use for aluminum has been discovered,making aluminum more expensive.In a market system,
A) aluminum roof producers may choose to look for substitutes for aluminum.
B) aluminum producers will choose to increase production of aluminum.
C) auto manufacturers will find it in their best interest to use more aluminum.
D) A and B are correct.

Question

Quizplus · Accepted Answer

If a new use for aluminum has been discovered and its demand has increased, the price of aluminum will go up, leading aluminum roof producers to look for substitutes for aluminum, while aluminum producers will likely increase production to meet the new demand. Additionally, auto manufacturers may find it in their best interests to use more aluminum due to its increased availability and popularity. Therefore, both A and B are correct.

Suppose a New Use for Aluminum Has Been Discovered,making Aluminum