Question

A factory can produce cars and trucks. If the price of cars increases, then the supply of trucks will _____.
increase
decrease
stay the same

Answer 1

Answer:

increase

Explanation:

Supply and price are connected to each other and also connected to the demand of a product. The higher the demand the higher the consumers are willing to pay for whatever you're offering. In a free market economy supply and price are positively related according to the law of supply. Higher prices mean less demand, so more supply. Also, higher prices mean an increase of interest in selling those goods.

Answer 2

Answer:

A factory can produce cars and trucks. If the price of cars increases, then the supply of trucks will... DECREASE.

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