Question

Oil is an important input in producing plastic. If the price of oil increases, all else equal, we expect the supply of: a. plastic to be unaffected. b. plastic to decrease. c. plastic to increase. d. oil to decrease.

Answer 1

b. Plastic to decrease

Answer 2

Answer:

Plastic to decrease

Explanation:

A positive relationship subsists between price and quantity supplied, and a negative relationship subsists between price and quantity demanded.