The correct answer is D i believe <span />
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>
Answer:The correct option is C. The trade between Canada and United States increases manufacturing in the United States.
Explanation:
The manufacturing industry of the United States is known to be the largest after China. The economy of the United States depends on its manufacturing industry. Majority of the Americans have jobs in the manufacturing industries.
A huge amount of money is made by the Americans by trading and exporting its manufactured goods. In a research conducted in 2016, it was seen that the trade relations between Canada and the United States were the second largest in the world. The United States exports the majority of its manufactured goods to Canada.
