Asked by cristian sanchez on Jun 14, 2024
Verified
If the input costs associated with supplying gasoline increases in Wisconsin,the supply of gasoline in Wisconsin will decrease.
Input Costs
Expenses incurred by firms for purchasing the raw materials, labor, and other inputs required for the production of goods or provision of services.
Gasoline
A combustible fluid obtained from petroleum, mainly utilized as a fuel for internal combustion engines.
Supply Decrease
A reduction in the quantity of a good that producers are willing or able to sell, often due to factors such as increased production costs, taxation, or supply chain disruptions.
- Distinguish between movements along supply and demand curves and shifts in these curves.
Verified Answer
AN
Ayesha NaseerJun 18, 2024
Final Answer :
True
Explanation :
If the input costs associated with supplying gasoline increase, such as the cost of crude oil or transportation, then it becomes more expensive for suppliers to produce and distribute gasoline. As a result, suppliers may choose to decrease their supply of gasoline to maintain their profit margins.
Learning Objectives
- Distinguish between movements along supply and demand curves and shifts in these curves.