'Did Mercedes Refuse To Supply Red Bull?'

Of course they did!
Mercedes has the best engine, but Red Bull had the best chassis last season (And possibly this year too) so Mercedes wasn't going to give the engine to their biggest competitor, not after they bought the Brawn team to start a factory team. The only thing stopping RBR from dominating F1 is the 30 hp gap they have from using the Renault engine.
 
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