Question

Suppose the price and the transacted of imported instant noodles increase which of the following is a possible reason? A. the income of the household decreases while instant noodles are inferior good. B More people are concerned about their health and reduce their consumption of imported instant noodles. C The transport cost of the import instant noodles increases. D. More local food manufacturers produce instant noodles.

Answer 1

C. The transport cost of the import instant noodles increases. Because the cost of transportation is one of the factors that influence price of a commodity.

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