Improved technology in the production of small cars often results in lower production costs.
Which of the following will most likely result from these reduced production costs?
1)the price of domestic small cars will decrease.
2)the demand for domestic small cars will decrease
3)fewer domestic small cars will be manufactured
4)domestic small car manufacturers will lose profits.
5)more foreign small cars will be imported.
i picked 1
Right!
To determine the most likely result from reduced production costs in the production of small cars, we need to analyze the relationship between production costs, price, demand, manufacturing, and profits.
When production costs decrease due to improved technology, it generally allows manufacturers to reduce the price of their products. This is because lower production costs enable the company to maintain or increase their profit margin while offering a more competitive price to consumers.
Therefore, your choice of option 1) is correct. The most likely result from reduced production costs in small car production is that the price of domestic small cars will decrease.