Ask Question
14 September, 00:49

Tin is needed to make guitar strings. The price of tin decreases, ceteris paribus (all

other things constant), what is the likely result?

A:The quantity demanded for guitars will decrease

B:Demand for silver will increase

C:The supply of guitars will decrease

D:The supply of guitars will increase

+1
Answers (1)
  1. 14 September, 03:11
    0
    D:The supply of guitars will increase

    Explanation:

    Tin is one of the materials needed to make a guitar. If the tin price decrease, the cost to make a guitar will also decrease. If the cost of guitar decrease, the producer can get more profit by selling a guitar so they will try to make more. This lead to an increased supply of guitar. Some producers will sell the guitar at a lower price too, make more people can buy it and the demand will increase. It is not stated if silver can substitute tin and if it's cheaper, so we can't draw a conclusion on it.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Tin is needed to make guitar strings. The price of tin decreases, ceteris paribus (all other things constant), what is the likely result? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers