Suppose a new law requires all piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. Other things constant, this law would cause:
A. an increase in the supply of piercings and a lower price for piercings.
B. an increase in the supply of piercings and a higher price for piercings.
C. a decrease in the supply of piercings and a higher price for piercings.
D. a decrease in the supply of piercings and a lower price for piercings.
Answer: C
Economics
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Economics
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Economics