The price of crude oil rose to over $100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil

The supply of plastic will decrease.

Explanation:

Supply simply means the amount of goods and services that a seller is willing to sell at a particular price and a given time period.

It should be noted that one determinant of supply is cost of raw material. Since there's an increase in the price of crude oil which is used in making plastic, there'll be a reduction in the number of plastic that can be produced, therefore, the supply of plastic will reduce.

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