Question

Without the evolution of the assembly line, what might the cost of goods look like? The price of goods would not change, despite the assembly line.
The price of goods would rise, because of the law of supply and demand.
The price of goods would drop, because there would be fewer goods available on the market.
The price of goods would decrease, because more skilled workers would become trained.

Answer 1

I believe the answer is B. The price of goods would rise, because of the law of supply and demand.

Answer 2

The correct answer is B.

If the assembly line had not been implemented in production processes, while the consumer side would remain equal (same amount of people would demand a certain product according to their needs and preferences), the amount supplied of such product in the market would plunge.

This excess of demand will entail a relative scarcity scenario (nº of people who demand the product is much larger than the total units of output generated), therefore prices would rise and, finally, only those consumers who are willing to pay, or can afford the new expensive price, will receive the product. Price adjustment has ocurred for the allocation of the units produced among the existing consumers, leading to a new market equilibrium.