Deciding how to spend the money coming from the tax collection is the main function of the government. Government must have to decide where they would invest the tax money in order to control the inflation and also to increase the productivity of its their country.
I believe that the answer is oui
The correct answer is "decrease".
Gas (oil) is considered a necessary input in the business, as it is required for the production process. Its price would be taken into account as a production cost.
<u>One of the factors that affects the supply of a good or service is the price of the inputs used during the manufacturing process.</u> The higher the price of inputs, the higher the costs of production, and the higher the price that the firm needs to set in order to gain an acceptable profit margin per unit sold.
On the other hand, the relationship between the price of inputs and the price of the products also works in the opposite direction. If the costs of the factors of production decrease, the firm can become more competitive in the markets by establishing a lower price for the product while it can continue earning the same, or even a larger, profit margin. <u>Therefore, the price of the product will decrease if so do the prices of inputs. </u>
