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 answer is in the 'necessary and proper clause' of the U.S.<span> Constitution, better known as the '</span>elastic clause<span>,' which allows Congress to </span>make<span> laws it needs to carry out its own powers.</span>
The African National Congress is a South African political party that was founded to give black and mixed-race South Africans the right to vote.
It, in essence, worked to fight against South Africa's racist apartheid system.
