Replacement parts for classic cars are expensive, even though these parts aren’t any more complicated than parts for new cars.
a. What kind of industry is the market for old car parts: An increasing cost industry, a constant cost industry, or a decreasing cost industry? How can you tell?
b. If people began recycling old cars more in the United States—repairing them rather than sending them off to junkyards—would the cost of spare parts probably rise or probably fall in the long run? Why do you think so?