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A manufacturer of plastic canoes and fiberglass kayaks is experiencing an increase in the price of kayaks in the marketplace, while the price of oil used to make plastic is rising. These two events are likely to lead to a(n): a. an increase in the number of soccer ball manufacturersb. an increase in the price of soccer balls c. an increase in taxes on the sale of soccer balls d. an improvement in soccer ball production technology

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Answer:

an increase in the price of soccer balls.

Explanation:

Soccer balls are made of polyethylene and other petroleum oil derivates. An increase in the price of oil will lead to increased price of soccer balls, because the raw material price has gone up.

Kayaks also have raw materials derived from oil that is why they are experiencing a rise in price.

Kayaks and soccer balls will have a directly proportional relationship due to their common raw material source- oil.

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