Brendon Inc. required a permit to open its business in a foreign country. Although it had met all the requirements for the permi
1 answer:
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Answer:
The supply will decrease.
Explanation:
Here are the options to this question :
A. The supply will increase.
B. The demand will decrease.
C. The supply will decrease.
D. The demand will increase.
Due to the increase in price of fuel, the cost of purchasing fuel would increase and this would make it more expensive to run transportation services. As a result, the supply of transportation services would fall. this would shift the supply curve for transportation services leftward. This would lead to a rise in price of transport services and a decrease in quantity suoplied.
Please check the attached image for a graph explaining this concept
