rubber is a raw material used to manufacture tires. several us tire companies import rubber from south…

rubber is a raw material used to manufacture tires. several us tire companies import rubber from south america. rubber comes from trees that grow in tropical areas. during this years hurricane season, several strong storms damaged many south american forests. as a result, there is less rubber available than in previous years. what will most likely happen to the tire industry in the united states? the price of tires will decrease due to the cost of rubber going up. the price of tires will decrease due to the cost of rubber going down. the price of tires will increase due to the cost of rubber going up. the price of tires will increase due to the cost of rubber going down.

rubber is a raw material used to manufacture tires. several us tire companies import rubber from south america. rubber comes from trees that grow in tropical areas. during this years hurricane season, several strong storms damaged many south american forests. as a result, there is less rubber available than in previous years. what will most likely happen to the tire industry in the united states? the price of tires will decrease due to the cost of rubber going up. the price of tires will decrease due to the cost of rubber going down. the price of tires will increase due to the cost of rubber going up. the price of tires will increase due to the cost of rubber going down.

Answer

Brief Explanations:

When the supply of rubber (a key raw - material for tires) decreases due to storm - damaged forests in South America, according to the law of supply and demand in economics, the cost of rubber will increase. As rubber is a major input in tire production, an increase in rubber cost will lead to an increase in the price of tires.

Answer:

The price of tires will increase due to the cost of rubber going up.