which scenario is an example of cost - push inflation? consumers have more money to buy cars, and the prices…

which scenario is an example of cost - push inflation? consumers have more money to buy cars, and the prices of cars and car parts rise as a result. an increase in workers’ wages raises the production cost of cars, and car prices rise as a result. the demand for cars falls as consumers have less disposable income, and car prices fall as a result. a government bailout helps car manufacturers lower their costs, and car prices fall as a result.

which scenario is an example of cost - push inflation? consumers have more money to buy cars, and the prices of cars and car parts rise as a result. an increase in workers’ wages raises the production cost of cars, and car prices rise as a result. the demand for cars falls as consumers have less disposable income, and car prices fall as a result. a government bailout helps car manufacturers lower their costs, and car prices fall as a result.

Answer

Brief Explanations:

Cost - push inflation occurs when production costs increase, leading to higher prices. An increase in workers' wages is a production cost increase for car manufacturers, which can cause car prices to rise, fitting the definition of cost - push inflation. The first option is demand - pull inflation (more consumer money increases demand and prices). The third option is a decrease in demand leading to price changes, not cost - push. The fourth option is about cost reduction and price decrease, not cost - push inflation.

Answer:

An increase in workers’ wages raises the production cost of cars, and car prices rise as a result.