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

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

which scenario is an example of cost - push inflation?\nconsumers have more money to buy cars, and the prices of cars and car parts rise as a result.\nan increase in workers’ wages raises the production cost of cars, and car prices rise as a result.\nthe demand for cars falls as consumers have less disposable income, and car prices fall as a result.\na 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 raises production costs for cars, which is a classic example of cost - push inflation. The first option is demand - pull inflation, the third is due to decreased demand, and the fourth is cost - reduction leading to price decrease.

Answer:

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