How does the use of plastic to produce bicycle helmets affect the plastic using industries it increases the price offered by other industries that increases the demand of product of their industries it increases the capital available to other industries it decreases the amount of resource available to other industries
The use of plastic to produce bicycle helmets can have both positive and negative effects on plastic-using industries and other industries in general. Here are the potential effects:
1. Increased price for plastic: As the demand for plastic increases due to the production of bicycle helmets, it can lead to a rise in the price of plastic. This increase in price can affect other industries that heavily rely on plastic as a raw material, such as packaging, toys, and electronics. These industries may have to pay more for plastic, thus increasing their production costs and potentially affecting the prices of their products.
2. Increased demand for plastic products: The production of bicycle helmets using plastic can create a higher demand for plastic products overall. This increased demand can have positive effects on plastic-using industries as they benefit from selling more products and potentially increasing their profits. Companies that produce plastic-based goods may see a boost in sales due to the increased demand for plastic.
3. Increased capital availability: With the growing demand for plastic helmets, businesses involved in manufacturing bicycle helmets or other plastic-based products may generate more revenues. This increased revenue can lead to higher capital availability, enabling them to invest in research and development, expand their production capacity, or invest in other ventures. This can be beneficial for plastic-using industries and the economy as a whole.
4. Decreased resource availability: The production of bicycle helmets using plastic consumes resources, such as petroleum, which is used to manufacture plastic. If the demand for plastic increases significantly due to helmet production, other industries that rely on the same resource may face decreased availability. This can lead to resource scarcity, increased competition, and potentially higher prices for these industries, affecting their production and profitability.
Overall, while the use of plastic for bicycle helmets can benefit plastic-using industries and increase capital availability, it can also lead to increased prices for plastic and decreased resource availability for other industries. The overall impact will depend on the balance between the demand for plastic helmets and the capacity of the plastic industry to meet that demand, as well as the availability of resources required for plastic production.