Steel producers offer to sell steel to U.S. auto producers at a much lower price than in the past. As a result one would expect:
a. no change in the supply of automobiles
b. an increase in the demand for automobiles.
c. an increase in the supply of automobiles.
d. a decrease in the supply of automobiles.
c
You might also like to view...
What does the phrase "jobless recovery" refer to?
A. It refers to a recovery from a recession which does not produce strong growth in employment. B. It refers to a situation in which rising productivity has made it possible for firms to reduce their workforce and increase output at the same time. C. It refers to the phenomenon where U.S. firms move their production abroad, thereby destroying jobs in the domestic market and creating new jobs in foreign markets. D. It refers to a situation in which a worker's real wage falls despite increases in productivity.
Derived demand is
A) a derivative of the demand curve. B) the demand for goods and services produced by companies using scarce resources. C) the demand for advertising to increase the sales of the product. D) the demand for the factors of production that are used to produce goods and services.