Question

question 4 of 10
alex was planning on buying a new tv. she kept putting off her purchase, so she was surprised six months later that the price had increased! what is one possible change in the supply chain that would most likely increase the price of her new tv?
theres a shortage of rare metals used to make tvs
theres a surplus of cardboard boxes used to ship the tvs
the price to use refrigerated trucks has skyrocketed
the cost of remote controls has been steady over time

Explanation:

To determine the correct answer, we analyze each option:

• Option 1: A shortage of rare metals (a key input in TV production) would reduce the supply of TVs. By the law of supply and demand, lower supply (with constant or increasing demand) leads to higher prices.
• Option 2: A surplus of cardboard boxes (a shipping material) would likely decrease shipping costs or have no upward pressure on TV prices, so this is incorrect.
• Option 3: Refrigerated trucks are not typically used for shipping TVs (TVs don't require refrigeration), so this cost increase would not affect TV prices.
• Option 4: Steady remote control costs don't impact TV prices as they are a small component and costs are stable.

Answer:

A. There's a shortage of rare metals used to make TVs