High School

Consider the following good: Ford F-150 trucks.

Production of this good is likely to fluctuate with:

A. Fluctuations in real GDP during the business cycle
B. Changes in government regulations
C. Seasonal demand
D. Changes in the price of gasoline

Answer :

Final answer:

Ford F-150 truck production varies with fluctuations in real GDP, government regulations, seasonal demand, and gasoline prices. Real GDP affects purchasing power, regulations impact manufacturing processes, seasonal demand alters production quantities, and fuel prices can sway buyers' preferences.

Explanation:

The production of Ford F-150 trucks is likely to fluctuate with all the given components i.e., fluctuations in real GDP during the business cycle, changes in government regulations, seasonal demand, and changes in the price of gasoline.

A. Fluctuations in real GDP during the business cycle impact customer's buying power, thus affecting the production of these trucks. B. Changes in government regulations like environmental and safety standards, affect manufacturing processes and costs, hence affecting production. C. Seasonal demand influences production, with more vehicles typically produced when demand is high, such as around the holiday season. D. Changes in the price of gasoline can influence consumers' decisions to purchase fuel-efficient vehicles, impacting the production of these trucks.

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