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>
The main reason why the Supreme Court’s decision in Gibbons v. Ogden was significant because it reaffirmed the power of the United States federal government to regulate commerce, which included Navigation. This expanded federal power over the states.
The Southerners opposed industry because their main revenue came from exported crash crops grown in plantations. The Southerners saw no need to incorporate industry since they thought it would not be useful at all.
