In: Economics
What effect did the invention of the assembly line have on cars?
A. |
Increase demand |
|
B. |
Decrease demand |
|
C. |
Increase supply |
|
D. |
Decrease supply |
The answer is (c) increase supply
The invention of the assembly line increases the efficiency of production as it greatly reduces the overall time involved in the production process. Thus, there will an increase in supply as efficiency has increased.
All other options are wrong as the demand will not change and supply will not decrease.