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

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

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

Answer

Brief Explanations:

Cost-push inflation occurs when rising production costs (like labor, materials) force businesses to raise prices for their goods. Let's analyze each option:

  1. The first option describes demand-pull inflation, where higher consumer demand drives up prices.
  2. The second option fits: higher worker wages increase production costs, leading to higher car prices, which is cost-push inflation.
  3. The third option shows a demand decrease leading to lower prices, which is deflationary, not inflation.
  4. The fourth option shows lower production costs leading to lower prices, which is also not inflation.

Answer:

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