Question

(1.5) quiz - supply
what market force or shift causes the supply of cars change, given an increase in the price of steel
○ government subsidies
○ input costs
○ technology
○ supply shocks

Explanation:

Steel is an input in car - making. A change in the price of steel affects the cost of production, which is an input cost factor. Government subsidies are payments from the government to producers, technology refers to production methods, and supply shocks are unexpected events affecting supply. Here, a change in steel price is an input cost change.

Answer:

B. Input costs