Oil is a main component in the manufacture of plastic bags.If the price of oil were to increase,the price of plastics bags would:

Question

Quizplus · Accepted Answer

If the price of oil, which is a main component in the manufacture of plastic bags, were to increase, the cost of production for plastic bags would increase. As a result, the price of plastic bags would also increase to maintain profit margins. This would lead to a decrease in the quantity demanded by consumers, as they may switch to alternative options, such as reusable bags or paper bags. Therefore, choice B is the best answer.

Oil Is a Main Component in the Manufacture of Plastic