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.
Answer
A
The price of tires will decrease due to the cost of rubber going up.
B
The price of tires will decrease due to the cost of rubber going down.
C
The price of tires will increase due to the cost of rubber going up.
D
The price of tires will increase due to the cost of rubber going down.
Explanation
The storms damaged rubber-producing forests, so less rubber is available. When a raw material becomes scarcer, its price tends to rise. Since rubber is used to make tires, the higher cost of rubber can raise the price of tires. Therefore, the correct choice is C: the price of tires will increase due to the cost of rubber going up.
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