Question

The United States imports electronics from China. Over the past few months, the value of Chinese currency has dropped. This drop in currency has led to an increase in production costs.

Which of the following is most likely to happen in this scenario?

The price of electronics will drop.
The price of electronics will rise.
The price of electronics will remain the same.
The U.S. will stop importing electronics.

Answer 1

The price of electronics will rise

Step-by-step explanation:

The price of electronics will rise because the Chinese currency had dropped and would lead to increase in production cost.