Question
The Rubber Manufacturers Association stated that it takes approximately seven gallons of oil to produce one tire. If there is an increase in the price
The Rubber Manufacturers Association stated that it takes approximately seven gallons of oil to produce one tire. If there is an increase in the price of oil, pick the answer below that best describes what will happen in the market for the tires?
A. The increase in the price of oil will increase the demand for tires
B. The increase in the price of oil will create excess demand for tires in the short-run
C. The increase in the price of oil will increase the supply of tires
D. The increase in the price of oil will have no affect on the demand or supply of tires
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