Answered

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 year's 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?
O The price of tires will decrease due to the cost of
rubber going up.
O The price of tires will decrease due to the cost of
rubber going down.
O The price of tires will increase due to the cost of
rubber going up.
O The price of tires will increase due to the cost of
rubber going down.



Answer :

GinnyAnswer
In this scenario, where strong storms damaged many South American forests that provide rubber for tire manufacturing, there will be less rubber available. This decrease in the supply of rubber is likely to lead to an increase in the cost of rubber for the US tire companies that import it from South America.

Here are the potential outcomes for the tire industry in the United States:

1. The price of tires will increase due to the cost of rubber going up.
- If the cost of rubber increases for US tire companies due to the limited supply caused by the damaged forests in South America, it is probable that the increased production costs will be passed on to consumers. This could result in higher prices for tires in the United States.

Therefore, considering the decrease in rubber availability and the subsequent rise in rubber prices, it is likely that the price of tires in the United States will increase.

Other Questions