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Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires a. is unaffected, and the supply of tires increases. b. is unaffected, and the supply of tires decreases. c. decreases, and the supply of tires increases. d. is unaffected, and the supply of tires could increase, decrease, or stay the same.

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Dadayemi75

Answer:D

Explanation:

If the increase in rubber coincides with advance technology of tires production. The demand of rubber is unaffected bringing the supply of tires increase to some extend provided the demand is high. It could decrease if there is tax or poor government policy. And it remain the same if the demand of rubber meet the supply of tires at equilibrium points.

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